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Warren calls for Education Department to 'rescind' student loan transfer to Treasury
The senators say the move would shift 9 million defaulted accounts first and could deepen confusion for 40 million borrowers.
- On Wednesday, five Senate Democrats led by Senator Elizabeth Warren urged Education Secretary Linda McMahon and Treasury Secretary Scott Bessent to immediately rescind the interagency partnership transferring student loan services to Treasury.
- The Trump Administration defends the shift as a 'hard reset' for the $1.7 trillion student loan portfolio; Education Press Secretary Ellen Keast called Treasury an 'experienced and proven fiduciary' to strengthen program administration.
- Lawmakers argue the move violates the Consolidated Appropriations Act of 2026, affecting 9 million defaulted accounts initially and threatening to trap borrowers in 'chaos and bureaucracy' while increasing taxpayer costs.
- McMahon and Bessent have two weeks to respond to lawmakers' demands regarding transfer logistics, timing, and costs, as senators assert the Education Department lacks authority to outsource these statutory responsibilities.
- Democrats continue legal challenges to stop President Donald Trump from dismantling the Education Department, with the Government Accountability Office investigating alleged infiltration of student aid systems as part of broader agency overhaul efforts.
16 Articles
16 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…
Warren calls for Education Department to ‘rescind’ student loan transfer to Treasury
(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 dismantling of the agency. Thursday marks the one year anniversary of Warren's [...]
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