Trump administration officials are once again exploring the possibility of selling portions of the federal government’s $1.6 trillion student loan portfolio, held by about 45 million borrowers, according to recent reporting by Politico .

Federal law dictates that such a sale cannot cost taxpayers any money. But, as Eileen Connor, executive director of the Project on Predatory Student Lending, told Politico , executing a deal that benefits both taxpayers and borrowers is nearly impossible. The federal government enjoys extraordinary powers of collection that private lenders do not — such as garnishing tax refunds, disability benefits, and Social Security payments. Absent those collection methods, private lenders make money through higher interest rates and longer repayment plans.

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