Warren calls on Trump administration to 'immediately stop' student loan sales

Senator Elizabeth Warren is demanding a halt to the Trump administration's plans to sell a $1.6 trillion portfolio of student loans to private companies. In a letter signed by more than 40 Democratic lawmakers, Warren said the sale would be a gift to wealthy individuals at the expense of borrowers and taxpayers, as it threatens to remove legally guaranteed protections for borrowers.

Source ABC

The discussion of a possible sale was first mentioned in Politico last month. Although Education Secretary Linda McMahon did not confirm that private companies would get a piece of the portfolio, she did confirm that she is considering moving the management of the loans to the Treasury Department. Warren and other Democrats argue that such moves could lead to financial losses for taxpayers and worsen the situation of borrowers, as former Education Department officials have already pointed out.

Warren launched the Save Our Schools campaign to examine the administration's attempts to shut down the Department of Education and make changes to the student loan system. Recently, independent investigators have begun reviewing sensitive loan data, given lawmakers' requests to investigate a possible "intrusion" into the Department of Government Efficiency.