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Sale of Portion of Federal Student Loan Portfolio Under Consideration

Published on October 10, 2025

The Trump administration has reapproached the idea of selling a portion of the federal student loan portfolio to the private market and has engaged with financial professionals and other federal agencies on the matter. The administration is also considering ending many debt forgiveness and repayment options. Experts note that it will be a challenge to make a deal attractive to investors while protecting borrowers.  Portfolio valuation is also an open question. During the first Trump administration, outside consultants found that the federal student loan portfolio was worth much less than anticipated. 

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