The Trump administration is addressing the U.S. government’s $1.45 trillion student loan portfolio, including hiring consultants to advise on selling all or portions of the portfolio to private investors.
The Wall Street Journal, citing “administration officials familiar with the matter,” said the move comes after a surge of defaults on loans and individuals taking advantage of federal debt-forgiveness plans that have led to reduced federal coffers.
The Journal reported:
The Education Department has hired the consulting firm McKinsey & Co. to study how much money could be lost if low repayment rates persist, an agency spokeswoman said. Meantime, President Trump’s top economic advisers in the White House are studying ways to improve the program’s finances, senior administration officials said.