More than 40 Democratic Lawmakers are Highlighting and trying to Prevent Reported Trump (R) Administration Plans to Sell the Government’s Student Loan Portfolio to the Private Market. Last month, 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 Lletter, which was led by Sen. Elizabeth Warren (D-MS).
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 Sstudent 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.
Asked about the Reported Plans, Ellen Keast (R), Press Secretary for Higher Education at the Education Department, said, “We are evaluating ways to improve the fiscal health of the nearly $1.7 trillion student loan portfolio to safeguard the interests of both students and taxpayers.”
The Treasury Department did Not immediately respond to The Hill’s Request for Comment. The Letter came after Politico reported the Talks between the Two Departments, the First Step in any Potential Sale.
After a Recommendation to Sell, the Student Loan Portfolio by the Treasury Department, the next move would be to get the Sale Approved by Congress.
“The Trump Administration should immediately stop any plans to sell or transfer responsibility of the student debt portfolio to the private, often predatory, market. The Department of Education’s role in providing financial aid to America’s students is clear, and the Department should not take any action that would enrich the wealthy and well-connected at the expense of working-class borrowers and taxpayers,” the Letter Concluded.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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