US EditionTrump Administration Considers Selling Federal Student Loan Debt To Private Market, Report Says
The administration aims to reduce federal involvement by selling part of the $1.6 trillion student loan debt to private investors, continuing efforts to reshape federal student lending.
- The Trump administration is considering selling parts of its student loan portfolio to private investors, aiming to reduce the federal role in lending and dismantle the Department of Education.
- Amid a push to shrink the federal role, the administration cites efforts like the executive order to close the Education Department and the OBBBA’s $300 billion in higher education cuts, to overhaul student lending.
- Top Education Department and Treasury Department officials have discussed selling high-performing segments with finance industry executives and may hire external consulting firms or banks, echoing McKinsey & Company’s 2019 valuation finding the debt worth less than expected.
- Advocates and experts warned privatization may not save taxpayers money because investors likely won't pay more than loans are worth, as Yu said, `'Private student loans generally have more onerous repayment terms than federal loans, lacking options such as Income-Driven Repayment and often limiting and imposing fees for the use of forbearances.'`
- The portfolio covers roughly 45 million federal student loan borrowers, collections restarted earlier this year, and the SAVE Plan helped over 8 million but will end under the One Big Beautiful Bill Act.
21 Articles
21 Articles
What if your student loan was sold to the private sector, as the Trump administration is looking for? We explain how it would affect the payment of your debt
What happens to borrowers if government sells student loan debt?
(NewsNation) — The Trump administration is exploring whether to sell the federal government’s massive student debt portfolio to private companies, raising questions about what the move could mean for student loan borrowers. The administration has been considering the move for months, and it now appears to be gaining traction. Multiple sources confirm the plan would shift some student loan management from the Education Department to the U.S. Trea…
Trump to sell student loans to private market? Here's what it means for borrowers
Donald Trump-led federal government is looking to potentially sell off parts of the $1.6 trillion student loan portfolio to the private market which is owed by nearly 43 million Americans. Here's what this move means for the student loan borrowers…
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Shares of SoFi Technologies Inc. (NASDAQ:SOFI) jumped on Tuesday amid reports that the President Donald Trump administration may sell parts of the federal government's $1.6 trillion student loan portfolio to private lenders, fueling optimism for the fintech's growth. Trump Administration Weighs Selling Federal Student Loans To Private Lenders Senior officials at the Treasury Department and the Department of Education have discussed transferring …
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