The Trump administration is considering selling a portion of the federal government’s $1.6 trillion student loan debt to the private market.
Politico reported that senior Education Department and Treasury Department officials held talks with finance executives centered on selling parts of the student debt portfolio, which covers loans taken out by about 45 million borrowers. However, private investors may not be willing to pay more than what the student loans are worth.
Separately, the Trump administration is also mulling whether to hire an external consulting firm or bank to assess the student debt portfolio and how it would be valued on the private market.
If student loan debt is sold, how does it affect borrowers?
Why you should care:
If the Trump administration did sell the federa