The Department of Education confirmed it is exploring options to reform or sell parts of the federal student‑loan portfolio—worth more than $1 trillion—after meetings with stakeholders since the new administration took office. In a letter to Sen. Elizabeth Warren, Under Secretary Nicholas Kent said the department has not made final decisions but continues to evaluate proposals to reshape federal loan management. Colleges, servicers, and borrower advocates warned that privatization could shift risks to borrowers, alter repayment protections, and complicate income‑driven plans. Education officials said any move would be gradual and legally complex, and Congress would play a critical role in shaping outcomes. The disclosure raises immediate planning questions for financial‑aid offices and state higher‑education agencies.