{"id":25033,"date":"2026-06-30T19:29:08","date_gmt":"2026-06-30T23:29:08","guid":{"rendered":"https:\/\/www.merkley.senate.gov\/?p=25033"},"modified":"2026-07-10T09:32:02","modified_gmt":"2026-07-10T13:32:02","slug":"warren-sanders-merkley-hirono-press-kkr-executives-on-deal-with-sallie-mae-to-expand-private-equitys-reach-over-student-loans","status":"publish","type":"post","link":"https:\/\/www.merkley.senate.gov\/es\/warren-sanders-merkley-hirono-press-kkr-executives-on-deal-with-sallie-mae-to-expand-private-equitys-reach-over-student-loans\/","title":{"rendered":"Warren, Sanders, Merkley, Hirono Press KKR Executives On Deal with Sallie Mae to Expand Private Equity&#8217;s Reach Over Student Loans"},"content":{"rendered":"<p class=\"has-text-align-center\"><em>\u201cPrivate equity should not prey on people\u2019s educational dreams for profit, but if the past is prologue, it will.\u201d<\/em><\/p>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/www.banking.senate.gov\/imo\/media\/doc\/20260629_private_equity_student_loans_bhua_helppdf.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Texto de la Carta (PDF)<\/a><\/p>\n\n\n\n<p><strong>Washington DC -&nbsp;<\/strong>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 &amp; Co. Inc., requesting information on the recent announcement of their company\u2019s \u201cmulti-year strategic partnership\u201d with private student loan lender Sallie Mae.<\/p>\n\n\n\n<p>The letter follows a\u00a0<a href=\"https:\/\/www.warren.senate.gov\/wp-content\/uploads\/media\/doc\/final_-_private_student_loan_report_on_plan_to_profit_from_big_beautiful_bill.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">February 2026 report<\/a>\u00a0by 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 \u201c(h)alf of the private lenders surveyed either have sold student loans to private equity firms or plan to do so in the future.\u201d<\/p>\n\n\n\n<p>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 \u201cclaims of illegal recruiting, consumer fraud, and other violations.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cKKR\u2019s financial relationship with EDMC demonstrates a willingness to tolerate aggressive profit-seeking at students\u2019 expense, and that should be disqualifying for bearing the responsibility for borrowers\u2019 financial futures,\u201d&nbsp;<strong>escribieron los senadores.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cPrivate lenders have a history of discriminatory and predatory practices, such as providing inaccurate billing statements, withdrawing excessive funds from borrowers\u2019 accounts, misrepresenting unemployment protections, and wrongfully denying discharges for bankruptcy or for Total and Permanent Disability,\u201d&nbsp;<strong>escribieron los senadores.&nbsp;<\/strong>\u201cThus far, KKR has given no assurances that it will protect borrowers from abusive and illegal practices.\u201d<\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>The Senators concluded:&nbsp;<\/strong>\u201cIn 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.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p class=\"has-text-align-center\">###<\/p>","protected":false},"excerpt":{"rendered":"<p>\u201cPrivate equity should not prey on people\u2019s educational dreams for profit, but if the past is prologue, it will.\u201d Text of the Letter (PDF) Washington, D.C. \u2013&nbsp;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 [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":18846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[40,129],"class_list":["post-25033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases","tag-education","tag-protecting-consumers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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