(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. Treasury. This shift would be a necessary step under the Higher Education Act of 1965 to sell off part of the $1.6 trillion student loan portfolio to private lenders.

What does this mean for borrowers?

This could change how collections and repayments work, as private lenders may be less forgiving than the federal government. However, POLITICO reports

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