US EditionWarren calls for Education Department to 'rescind' student loan transfer to Treasury
Democrats say the move could worsen defaults for 9 million borrowers and add red tape while Treasury lacks the staff to manage the portfolio.
- On Wednesday, Senator Elizabeth Warren and Democratic senators urged the Department of Education and Treasury Secretary Scott Bessent to rescind the transfer of the nearly $1.7 trillion federal student loan portfolio to Treasury.
- The Trump Administration plans to transfer 9 million defaulted student-loan accounts to the Treasury Department in phases, a move lawmakers argue violates the Consolidated Appropriations Act of 2026.
- Defending the partnership, Education Press Secretary for Higher Education Ellen Keast stated, "now is the time for a hard reset in how the federal government provides and services student loans," citing broad agency authority.
- Lawmakers warned the transfer "threatens to trap student loan borrowers, students, and families in chaos and bureaucracy, all while American taxpayers are left to foot the bill" for a system Treasury cannot manage.
- This petition marks the one-year anniversary of Warren's "Save Our Schools" campaign, which triggered a Government Accountability Office probe into alleged "infiltration" of Federal Student Aid data systems.
14 Articles
14 Articles
Senate Dems criticize Trump plan to remove student loan oversight from Ed Department
U.S. Senate Democrats say the Trump administration plan to transfer student loan management from the Education Department to the Treasury Department will add unneeded bureaucracy. (Photo illustration by Catherine Lane/Getty Images)WASHINGTON — U.S. Senate Democrats this week blasted the Trump administration’s attempts to shift management of federal student loans from the Education Department to the Treasury Department, saying it would contribute…
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US Senate Dems rip Trump plan to remove student loan oversight from Education Department
U.S. Senate Democrats say the Trump administration plan to transfer student loan management from the Education Department to the Treasury Department will add unneeded bureaucracy. (Photo illustration by Catherine Lane/Getty Images)WASHINGTON — U.S. Senate Democrats this week blasted the Trump administration’s attempts to shift management of federal student loans from the Education Department to the Treasury Department, saying it would contribute…
Warren calls for Education Department to 'rescind' student loan transfer to Treasury
Senator Elizabeth Warren, a Democrat from Massachusetts and ranking member of the Senate Banking, Housing, and Urban Affairs Committee, during a hearing in Washington, D.C., March 26, 2026. (Aaron Schwartz/Bloomberg via Getty Images) (WASHINGTON) — Sen. Elizabeth Warren, D-Mass., is petitioning the Department of Education to stop its transfer of federal student aid services to the Department of Treasury in her latest effort to halt the dismantli…
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