Overview

• Senior Education and Treasury officials have discussed a potential sale with finance industry executives, including possible buyers, and may hire an outside firm or bank to assess portfolio value.
• The federal portfolio totals roughly $1.6–$1.67 trillion and covers more than 42 million borrowers, with discussions reportedly focusing on selling higher‑performing segments.
• Under the Higher Education Act, any sale would require consultation with Treasury and must not add costs for taxpayers, a hurdle experts say could be difficult given likely private‑market valuations.
• Analysts and borrower advocates warn a transfer to private owners could weaken access to federal-style protections and introduce operational disruptions, while questions persist over which repayment options borrowers could retain.
• The talks revive a 2019 effort to evaluate sales and track with broader administration moves to shrink the Education Department’s role, including resumed collections and an executive order to close the agency that would require congressional approval for a portfolio transfer.