Overview
- Sen. Elizabeth Warren, joined by Sen. Bernie Sanders and Rep. Ayanna Pressley, led a letter signed by more than 40 Democrats urging Education Secretary Linda McMahon and Treasury Secretary Scott Bessent to stop any privatization discussions.
- The lawmakers warned that a sale could strip borrowers of legal protections and may be unlawful if executed at a loss, echoing concerns from advocates and a former Education Department official who cited a prior Treasury pilot that performed poorly.
- Department spokesperson Ellen Keast said officials are evaluating options to strengthen the nearly $1.7 trillion student loan portfolio to protect students and taxpayers.
- Education Secretary Linda McMahon has publicly called Treasury a “natural” home for student loans and acknowledged conversations with Bessent about that possibility.
- No agreement or sale has been announced, and news outlets reference Politico’s October report on exploratory talks while noting they have not independently verified any valuation work or negotiations.