Democrats seek to halt Trump's reported plan to sell off student loan portfolio

Source: The Hill

11/17/25 10:20 AM ET


More than 40 Democratic lawmakers are highlighting and trying to prevent reported Trump administration plans to sell the government’s student loan portfolio to the private market. Last month, Politico reported the Education Department and Treasury Department were discussing the sale of the portfolio, a move the Democrats argue in a Sunday letter would be a disaster for student loan borrowers.

“Let’s be clear: This sale would be a giveaway to wealthy insiders at the expense of working-class borrowers and taxpayers. It threatens the loss of borrowers’ legally guaranteed protections, and the sale would likely be illegal if the debt is sold at a loss for taxpayers. We urge you to immediately cease any efforts to privatize the federal student loan portfolio,” reads the letter, which was led by Sen. Elizabeth Warren (D-Mass.).

The Democrats argue it is illegal to strip borrowers of certain protections and the Trump administration in the sale of the portfolio could go after income-driven repayment programs, death and disability discharges and relief for those defrauded by their schools.

It could also cause losses to the taxpayer, according to Democrats. The law states the student loan portfolio cannot be sold at the expense of the taxpayer. “Furthermore, as a result of a previous failed attempt to sell the student loan portfolio, the Trump Administration already possesses information suggesting that the sale of student loans would not be in the government’s fiscal interest,” the letter said.

Read more: https://thehill.com/homenews/education/5608859-trump-student-loan-portfolio-debt-relief-warren/