"Trump administration officials are exploring options to sell off parts of the federal government's $1.6 trillion student loan portfolio to the private market, according to three people familiar with the matter. The discussions have taken place among senior Education Department and Treasury Department officials and have focused on selling high-performing portions of the government's massive portfolio of student debt, which is owed by about 45 million Americans."
"Since retaking office, Trump has already enacted numerous changes to student loan policy that have squeezed borrowers, including resuming wage garnishments for millions of borrowers with overdue debt payments after a five-year reprieve. Meanwhile, he has slashed programs that helped those in debt pay their loans. These include the Biden-era Saving on a Valuable Education (SAVE) Plan, which provided payment assistance to over 8 million student debtors based on income level."
"With little notice, the administration also paused forgiveness from the Income-Based Repayment (IBR) system, which was established in 2007 and enabled 2 million more borrowers to pay rates pegged to their income, with the promise of forgiveness after 20 to 25 years. The OBBBA included a total $300 billion worth of cuts to higher education programs, primarily through federal student loans."
Senior Education and Treasury officials are exploring selling high-performing portions of the $1.6 trillion federal student loan portfolio, which is owed by about 45 million Americans. The administration has resumed wage garnishments for millions of borrowers and has reduced repayment and forgiveness programs. The Biden-era SAVE plan, which aided over 8 million borrowers, faces termination under the One Big Beautiful Bill Act timeline. Forgiveness from the Income-Based Repayment (IBR) system has been paused, affecting borrowers who relied on eventual discharge after 20–25 years. The OBBBA includes roughly $300 billion in cuts to higher education programs, mainly via federal loans.
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