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Treasury Transfer

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Democrats urge broad student-debt relief and a halt to defaulted-loan transfers to Treasury
politics3 hours ago

Democrats urge broad student-debt relief and a halt to defaulted-loan transfers to Treasury

A coalition of Democrats led by Sen. Warren is pressing the Education Department to cancel debt for borrowers eligible under existing relief programs (including PSLF, disability discharges, and borrower defense), clear the backlog of income-driven repayment applications, and extend the pause on involuntary collections, while blocking the transfer of defaulted loans to the Treasury. They warn Trump-era changes set to take effect July 1—eliminating the SAVE plan and raising payments—could push more borrowers into default as millions are already in default or delinquent, risking reduced access to credit.