The US President Donald Trump-led federal administration is looking to potentially sell off parts of the $1.6 trillion student loan portfolio to the private market, reported the news portal Politico, citing people aware of the development on 7 October 2025.

According to the news portal's report, officials from the federal government's Education and Treasury Departments are focused on selling high-performing portions of the government’s massive portfolio of student debt owed by nearly 45 million US citizens.

The news report also highlighted that the move also aligns with the wider Republican efforts to scale back federal student loans and expand the operations to involve private sector contributions in the US economy.

“The Trump administration is committed to analysing all aspects of the

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