Overview

• Senior officials at the Education and Treasury departments have discussed a potential sale with finance executives and are considering hiring an outside firm to assess market value, according to Politico.
• The reported concept targets well‑performing portions of the $1.67 trillion federal portfolio serving about 42.3 million borrowers rather than a wholesale transfer.
• A similar effort during Trump’s first term brought in consultants, produced lower‑than‑expected valuations, and was shelved as the COVID‑19 crisis hit.
• The administration has not confirmed any plan, and federal law would require consultation with Treasury and a determination that taxpayers would not incur losses before any sale.
• Policy experts doubt taxpayers would gain, and borrower advocates warn a sale could weaken protections such as income‑driven repayment and loan forgiveness.