Officials in the Education and Treasury departments are weighing a plan to sell portions of the federal government’s $1.6 trillion student-loan portfolio to private investors, Politico reported. Senior officials have discussed offloading select, high-performing loan segments; advocates and experts warn a sale could limit future federal cancellation powers and complicate borrower protections. The talks are internal but mark a potential structural shift in how student debt is managed and who bears default risk.
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