Senator Elizabeth Warren (D-Mass.) said the Government Accountability Office (GAO) is launching an investigation into the Trump administration’s transfer of Education Department programs to other federal agencies, including a review of student loan default collections being moved to the Treasury Department.
In a post on X last Monday, Warren said she pushed for the investigation because the administration is “ripping programs out of the Education Department and shipping them off to agencies with no expertise.” She described the GAO review as a “major step forward” in protecting students and teachers.
According to a May 26 letter from the GAO, the congressional watchdog has initiated work in response to a February request from lawmakers to examine the impact of transferring Education Department responsibilities to other federal agencies.
The agency said it plans to begin reviewing the transfer of student loan default collections from the Department of Education to the Department of the Treasury later this summer.
The review expands on existing GAO work examining interagency agreements involving the Education Department. According to ABC News, the request was backed by Warren, Sen. Bernie Sanders (I-Vt.), Sen. Patty Murray (D-Wash.) and other Democratic lawmakers.
Treasury Transfer Draws Scrutiny
The Trump administration announced in March that it would transfer student loan default collection responsibilities from the Department of Education to the Department of the Treasury, arguing that the federal student loan system required a “hard reset.”
Administration officials have defended the move. The Education Department previously said Treasury’s financial management expertise would strengthen administration of federal student loan programs and improve outcomes for borrowers and taxpayers. The White House has also argued that transferring certain functions aligns with President Donald Trump‘s goal of reducing the federal education bureaucracy.
Warren has repeatedly opposed efforts to shift Education Department responsibilities elsewhere, arguing such changes could harm students and borrowers.
Student Loan Stress Continues To Build
The investigation comes as repayment challenges across the federal student loan system continue to intensify.
Recent Federal Reserve Bank of New York data showed delinquent federal student loan debt reached a record $171.4 billion in the first quarter of 2026. Approximately 2.6 million borrowers entered default during the quarter, according to data highlighted by market commentator The Kobeissi Letter.
At the same time, more than 7 million borrowers are expected to exit the Biden-era SAVE repayment plan following a federal court ruling earlier this year. New repayment restrictions under Trump’s One Big Beautiful Bill Act are also set to take effect for some borrowers beginning July 1.
The combination of rising defaults, changing repayment rules and the transfer of default collection responsibilities has increased attention on how federal student loans are administered and collected.
This marks the latest development in Warren’s broader “Save Our Schools” campaign, which has challenged efforts to reduce the Education Department’s role. Last year, Warren also called for an investigation into alleged access to sensitive federal student loan data, arguing stronger oversight was needed to protect borrowers and maintain confidence in federal education programs.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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