New Responses from Education, Treasury Departments Reveal Trump Admin Cannot Justify Attempts to Dismantle Education Department

New Responses from Education, Treasury Departments Reveal Trump Admin Cannot Justify Attempts to Dismantle Education Department

Response from ED (PDF) | Response from Treasury (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking Committee, released new responses from the Department of Education (ED) and the Treasury Department (Treasury) demonstrating that the agencies cannot articulate a clear purpose or plan for implementing their illegal interagency agreement (IAA) transferring the administration of federal student loans to Treasury.

The responses were in reply to Senator Warren's April 2nd letter with Senators Bernie Sanders (I-Vt.), Ron Wyden (D-Ore.), Patty Murray (D-Wash.), and Tammy Baldwin (D-Wis.), pressing Secretary of Education Linda McMahon and Secretary of the Treasury Scott Bessent to rescind the IAA.

In new responses to the senators, the agencies failed to provide basic details about the implementation of the agreement, including timing, cost, and Treasury's plans for forced collections, or concretely explain how the agreement will help borrowers and families.

Treasury also confirmed that while ED is transferring staff to Treasury to execute the IAA, Treasury is also transferring staff to ED, raising further concerns that the arrangement is wasting staff and resources.

Previous IAAs have cost ED over $1 million in extra program costs and resulted in weeks-long delays in grant disbursements that students and schools rely upon.

While ED and Treasury again insisted in the new responses that their IAA is legal, Secretary McMahon admitted to Senator Warren last year that she understands she has no authority to move the statutory responsibilities of the Department of Education to other agencies without Congress passing legislation first.

"The Trump administration has no explanation for how this latest attempt to dismantle the Education Department is helping anyone - because it isn't," said Senator Warren. "The truth is that Trump is jacking up costs for borrowers and wasting resources. This illegal agreement is bad for students and families, and I'll do everything I can to fight back."

Senator Warren has led the fight to make our higher education system more affordable, cancel student loan debt, and hold student loan servicers accountable for incompetence and malfeasance. She launched the Save Our Schools campaign in a coordinated effort to fight back against President Trump's attempts to abolish the Department of Education.

• On April 28, 2026, Senators Warren (D-Mass.) and Bernie Sanders (I-Vt.) pressed the Consumer Financial Protection Bureau's new Student Loan Ombudsman, Geoffrey Gradler, on his plan to protect student loan borrowers, especially given his past censorship of a key student loan report at the CFPB and his background as a lobbyist for lenders. The senators also asked him to recuse himself from past clients' matters that might come before his office at the CFPB.
• On April 2, 2026, Senators Warren, Sanders, Wyden, Murray, and Baldwin-all top Democrats on influential education committees-pressed Secretary of Education Linda McMahon and Secretary of the Treasury Scott Bessent to rescind their plans to move the administration of federal student loans to the Treasury Department, the latest move in the Trump administration's attempts to dismantle the Department of Education.
• On February 23, 2026, Senators Elizabeth Warren and Bernie Sanders, along with Representative Ayanna Pressley, released a response from the Department of Education to their November letter regarding a potential sale of the federal student debt portfolio. In the response, ED confirms for the first time publicly that they are weighing a sale of the federal student loan portfolio.
• On February 19, 2026, Senators Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.) pushed Education Secretary Linda McMahon on concerns that the U.S. Department of Education is apparently obstructing Congressional efforts to hold federal student loan servicers accountable for underperformance.
• On February 2, 2026, Senator Warren released a new report revealing the findings of their investigation into how private student loan lenders will reap the benefits from cuts to federal student loan access enacted in Republicans' Big, Beautiful Bill (OBBBA). The report is the first Congressional analysis of the impacts of the OBBBA's student loan restrictions on the private lending market.
• On January 22, 2026, Senators Elizabeth Warren, Jeff Merkley (D-Ore.), Sheldon Whitehouse (D-R.I.), and Tim Kaine (D-Va.) led their Senate colleagues in demanding answers from Trump Education Secretary Linda McMahon about the Trump Administration's proposal to eliminate affordable student loan repayment options for millions of Americans.
• On December 8, 2025, Senator Warren led her colleagues in writing to the federal student loan servicers to ensure they are providing borrowers with the customer service they deserve in the wake of the Trump administration's student loan policy whiplash. The senators sent letters to MOHELA, Nelnet, EdFinancial, Maximus, and CRI.
• On December 1, 2025, Senator Warren published an op-ed in USA Today calling for Secretary of Education Linda McMahon to resign following the recent news that President Trump and Secretary McMahon plan to further dismantle the Department of Education (ED).
• On November 17, 2025, Senator Warren led over 40 of her colleagues in a letter urging Secretary of Education Linda McMahon and Secretary of the Treasury Scott Bessent to immediately end any plans to sell or transfer the federal student loan portfolio to the private market.
• On November 10, 2025, Senator Warren led her colleagues in a letter urging the Trump administration to use the IRS's existing legal authorities to stop the looming "tax bomb" facing borrowers who obtain income-driven repayment (IDR) discharges of their student loan debt.
• On October 15, 2025, Senator Warren and Representative Ayanna Pressley (D-Mass.) led 70 members of Congress in a letter calling on the Trump administration to address the ongoing and unprecedented wave of student loan delinquencies and defaults, which threatens the financial stability of millions of people and could have disastrous effects on the American economy.
• On September 19, 2025, following a push by Senator Warren and nine other senators, the Acting Inspector General of the U.S. Department of Education agreed to open an investigation into DOGE's infiltration of internal systems, including the scope of its access to sensitive student loan borrower information and its impact on borrowers' rights and privacy.
• On August 26, 2025, Senator Warren led colleagues in sending a follow-up letter to Education Secretary Linda McMahon condemning the Department of Education for deliberately hiding the "Submit a Complaint" button on the Office of Federal Student Aid's website, firing employees responsible for providing customer service to borrowers and families and misleading Congress about the scope of these firings.
• On August 4, 2025, Senator Warren led eight Senators in pressing major private student loan lenders on their plans to serve the incoming surge of borrowers who will be pushed to the industry because of Republicans' recently passed "Big, Beautiful Bill."
• On July 17, 2025, Senator Warren released a new 23-page report, "Education At Risk: Frontline Impacts of Trump's War on Students," highlighting warnings from 11 major national education and civil rights organizations on the impact of the Trump Administration's dismantling of the Department of Education (ED), slashing support to millions of American students, primary and secondary school teachers, administrators, parents, and student loan borrowers.
• On July 15, 2025, Senators Warren and Sanders, along with Senate Democratic Leader Chuck Schumer, sent a letter to Secretary of Education Linda McMahon, urging her to reverse the interest hike on student loan borrowers in the SAVE forbearance.

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