Senior officials in the Education and Treasury departments are reportedly weighing plans to sell select, ‘high‑performing’ segments of the federal student‑loan portfolio to private buyers, according to reporting. The portfolio comprises roughly $1.6 trillion owed by about 45 million borrowers. Officials have held talks with potential buyers and internal ‘government efficiency’ teams, exploring how sales could raise upfront cash for the Treasury while changing who services and enforces these loans. Experts warn an outright sale could reduce federal leverage over borrower protections and limit the government’s ability to cancel or modify debt in the future. Why it matters: shifting federal student debt to private capital would be a structural policy change with long‑term consequences for borrowers, taxpayer risk and higher‑education financing. University financial officers and student‑affairs leaders should monitor buyer terms, servicing rules and any changes to borrower relief pathways.