Trump Admin Reportedly Floats Selling Parts Of $1.6 Trillion Federal Student Loan Portfolio

The Trump administration is considering selling off parts of the federal government’s $1.6 trillion student loan portfolio to the private market, according to Politico.

The matter has been discussed by senior officials in the Department of Education (ED) and the Treasury Department, Politico reported on Tuesday, citing three anonymous sources. The talks center around the idea of selling well-performing parts of the government’s giant portfolio of student debt, the outlet reported.

The federal government’s student loan portfolio includes 42.3 million recipients with federal student loans totaling $1.67 trillion, according to a Federal Student Aid report released Aug. 21.

Officials have also held discussions on the subject with executives in the finance industry, including prospective purchasers of the student debt, according to Politico. Moreover, the conversations have also included potentially bringing in an outside consulting firm or bank to examine the student loan programs and evaluate how the private market would value parts of the student debt portfolio, the outlet reported, citing an anonymous source.

“The Trump administration is committed to analyzing all aspects of the federal student loan portfolio,” one senior Trump administration official told Politico. “Unlike the previous administration, we are focused on ensuring the long-term health of the portfolio for the benefit of both students and taxpayers.”