The Donald Trump government may soon sell part of the federal student loan portfolio to the private market — with a focus on ‘high-performing’ segments. Federal loans make up a majority of student debt in the US and currently stands at roughly $1.67 trillion. There are more than 42 million borrowers across the country who owe government or private student loan balances. The discussions also come mere months after the POTUS introduced sweeping reforms through the One Big Beautiful Bill Act. The Department of Education also resumed student loan collections in 2025 following a lengthy pause.

$1.6 trillion student loan portfolio

According to a Politico report, discussions have taken place among senior Department of Education and Treasury officials about a possible sale. Multiple sources told

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