Scholar mortgage replace: Warning issued over plans to promote debt to buyers

[ad_1] Democratic Senator Elizabeth Warren has warned towards a reported Trump administration proposal to promote elements of the $1.6 trillion federal scholar mortgage portfolio to non-public corporations.

Warren wrote a letter to Schooling Secretary Linda McMahon and Treasury Secretary Scott Bessent, signed by greater than 40 Democratic lawmakers, warning that it could be a “great mistake.”

“This sale could be a giveaway to rich insiders on the expense of working-class debtors and taxpayers," the letter obtained by ABC Information says. Newsweek has not seen a replica of the letter.

"It threatens the lack of debtors' legally assured protections, and the sale would doubtless be unlawful if the debt is bought at a loss for taxpayers."

Politico, citing sources, first reported in October that the Trump administration was contemplating promoting off elements of the federal authorities’s scholar mortgage portfolio to the personal market. Newsweek has not independently verified the declare. Thus far, no formal plans or agreements have been introduced by the administration.

Newsweek contacted the Division of Schooling for remark in an electronic mail despatched outdoors of normal working hours on Monday.

This can be a growing story and can be up to date.

<img id="11058362" alt="" caption="Sen. Elizabeth Warren (D-MA) speaks to reporters following a vote on Capitol Hill on November 9, 2025 in Washington, DC." credit="Anna Rose Layden" sourcealt="" sources="["Getty Images"]" fetchpriority="auto" loading="lazy" width="3000" height="2001" decoding="async" data-nimg="1" src="color:transparent;aspect-ratio:inherit;object-fit:cover" sizes="(min-width: 1200px) 1536px, (min-width: 768px) 768px, 100vw" srcset="https://assets.newsweek.com/wp-content/uploads/2025/11/GettyImages-2245412467.jpg?w=640&quality=75&webp=1 640w, https://assets.newsweek.com/wp-content/uploads/2025/11/GettyImages-2245412467.jpg?w=750&quality=75&webp=1 750w, https://assets.newsweek.com/wp-content/uploads/2025/11/GettyImages-2245412467.jpg?w=1000&quality=75&webp=1 1000w, https://assets.newsweek.com/wp-content/uploads/2025/11/GettyImages-2245412467.jpg?w=1200&quality=75&webp=1 1200w, https://assets.newsweek.com/wp-content/uploads/2025/11/GettyImages-2245412467.jpg?w=1360&quality=75&webp=1 1360w, https://assets.newsweek.com/wp-content/uploads/2025/11/GettyImages-2245412467.jpg?w=1600&quality=75&webp=1 1600w" bad-src="https://assets.newsweek.com/wp-content/uploads/2025/11/GettyImages-2245412467.jpg?w=1600&quality=75&webp=1"/> [ad_2] Source link