Trump administration weighs selling parts of $1.6T federal student loan portfolio

[Jacson6]

Trump administration officials are exploring options to sell off parts of the federal government’s $1.6 trillion student loan portfolio to the private market, according to three people familiar with the matter.

The discussions have taken place among senior Education Department and Treasury Department officials and have focused on selling high-performing portions of the government’s massive portfolio of student debt, which is owed by about 45 million Americans.

source - politico: https://www.politico.com/news/2025/10/07/trump-administration-selling-federal-student-loan-portfolio-00595456

[UpInArms]

1. Omg

The depths of depravity are going to destroy this country

[Alice B.]

2. I feel stupid for asking at this point but, can they do that?

Nevermind.
I owe a lot.
If they do this, we should be able to discharge student loans in bankruptcy.

[Jacson6]

3. They will carve out a law that prevents that. n/t

[Alice B.]

4. Of course.

[Johnny2X2X]

5. I don't think most people understand how badly they've screwed borrowers.

It's full scale financial economic disaster for millions of Americans. They raised interest rates. They doubled and tripled people's monthly payments.

You've got people losing everything they've worked for because of this. People are seeing payments go from $400 a month to $1200 a month. People are making payments and still seeing their balances rise monthly. It's a full scale disaster that's only going to get worse.

[RedWhiteBlueIsRacist]

6. Our foreign enemies no longer have to chant "Death to America." They can just chant: "GOP to America!"