Warren, Sanders, Merkley, Hirono Press KKR Executives On Deal with Sallie Mae to Expand Private Equity's Reach Over Student Loans

Warren, Sanders, Merkley, Hirono Press KKR Executives On Deal with Sallie Mae to Expand Private Equity's Reach Over Student Loans

"Private equity should not prey on people's educational dreams for profit, but if the past is prologue, it will."

Text of the Letter (PDF)

Washington, D.C. - Today, U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, Bernie Sanders (I-VT), Ranking Member of the Senate Health, Education, Labor, and Pensions Committee, Jeff Merkley (D-Ore.), and Mazie Hirono (D-HI) sent a letter to Chief Executive Officers, Henry Kravis, George Roberts, Joseph Bae, and Scott Nuttall at private equity firm KKR & Co. Inc., requesting information on the recent announcement of their company's "multi-year strategic partnership" with private student loan lender Sallie Mae.

The letter follows a February 2026 report by the Offices of Senators Warren, Sanders, Hirono, Merkley, as well as Democratic Leader Chuck Schumer (D-NY), Richard Blumenthal (D-Conn.), Ed Markey (D-Mass.), Chris Van Hollen (D-Mary.), and Ron Wyden (D-Ore.) that revealed "(h)alf of the private lenders surveyed either have sold student loans to private equity firms or plan to do so in the future."

KKR has a history of predatory partnerships with the private education industry. For example, during the period for which KKR was a major lender to for-profit education company Education Management Corp (EDMC), EDMC was charged by the U.S. Department of Justice (DOJ) for "claims of illegal recruiting, consumer fraud, and other violations."

"KKR's financial relationship with EDMC demonstrates a willingness to tolerate aggressive profit-seeking at students' expense, and that should be disqualifying for bearing the responsibility for borrowers' financial futures," wrote the Senators.

"Private lenders have a history of discriminatory and predatory practices, such as providing inaccurate billing statements, withdrawing excessive funds from borrowers' accounts, misrepresenting unemployment protections, and wrongfully denying discharges for bankruptcy or for Total and Permanent Disability," wrote the Senators. "Thus far, KKR has given no assurances that it will protect borrowers from abusive and illegal practices."

The Senators concluded: "In the interest of providing transparency about private student lending and your current and future involvement, we request that you provide responses to the below requests no later than July 13, 2026."

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