Overview

• Senior Education and Treasury officials have discussed selling high‑performing portions of the $1.6 trillion portfolio and have sounded out finance executives while weighing an outside firm to appraise potential deals, according to multiple reports.
• The administration has not announced a decision, though sources describe months of talks gaining traction and say shifting some loan functions to Treasury is being examined as part of the process allowed under the Higher Education Act.
• Federal law permits sales only after Treasury consultation and only if taxpayers are not harmed, a test experts say will be difficult because private investors are unlikely to pay a premium for loans that lack federal collection powers.
• Borrower advocates warn a sale could complicate income‑driven repayment, forgiveness pathways and data‑matching that automate relief, while private owners would operate without the government’s expansive collection authorities.
• The exploration comes alongside efforts to shrink the Education Department’s role, including resumed collections in 2025 and prior reviews of the portfolio in 2019, with analysts expecting legal scrutiny and possible congressional involvement if a sale is pursued.