Education department confirms ongoing talks to privatize over $1 trillion in student loans

Date:

February 27, 2026

The possibility of privatizing more than a trillion dollars’ worth of federal student loans is still on the table.

In a letter to Sen. Elizabeth Warren (D-Mass.) in early February, the Department of Education confirmed it is still exploring the possibility of selling the federal student loans to a private lender.1

“We have met with a variety of stakeholders to discuss ideas to reform the student loan portfolio since President Trump took office on January 20, 2025,” wrote Nicholas Kent, undersecretary for the Department of Education. “The Department has not taken any final actions or made final decisions regarding selling all or part of the student loan portfolio.”

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Education department confirms ongoing talks to privatize over $1 trillion in student loans

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