Officials in the Trump administration are reportedly weighing the possibility of selling portions of the federal government’s $1.6tn student loan portfolio to private investors, which experts say could carry risks for both taxpayers and borrowers—potentially reshaping the student loan landscape in unpredictable ways.
Senior officials at the education and treasury departments have been engaged in internal conversations about offloading select, high-performing segments of the government’s student debt holdings, according to a Politico report this week. These loans are part of the larger portfolio owed by roughly 45 million borrowers nationwide.
Administration officials have also reportedly reached out to figures in the financial industry, including potential buyers, to discuss the idea. The deliberations, which began earlier this year, initially included “department of government efficiency” officials stationed at the education department but are now being guided primarily by senior political appointees.
Read more at The Guardian.
