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.