GAO investigating student loan transfers to Treasury Dept., Warren says
Summary
The Government Accountability Office (GAO) is investigating the transfer of student loan services from the Department of Education to the Department of the Treasury under President Donald Trump's administration. Senators Elizabeth Warren and Bernie Sanders raised concerns that this shift may harm students and cause administrative problems.Key Facts
- The GAO, a nonpartisan government watchdog, will examine the student loan transfer this summer.
- The transfer involves moving the nearly $1.7 trillion student loan portfolio to the Treasury Department.
- Senate Democrats Warren and Sanders say the transfer may illegally reduce Education Department functions and hurt students.
- Defaulted student loans, those unpaid for over 9 months, could be affected by this change, potentially impacting borrowers’ credit and benefits.
- The Education Department says the move is needed to improve loan management and serve borrowers better.
- The Department of Labor supports agreements with Education, saying they improve program delivery.
- President Trump promised to reduce federal education bureaucracy and give states more control over education.
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