Privatizing student loan debt looks like a Trump/MAGA twofer: sabotaging higher education and further enriching billionaires. Oh, and probably stiffing taxpayers, too.
A Politico exclusive focuses on the Trump administration’s desire to sell student loan debt. But it’s pretty clear that what’s being explored is a path to full privatization of future loans. Privatizing student loan debt “aligns with broader Republican efforts to scale back federal student lending and expand private-sector involvement in the economy,” Politico said. Got it.
There doesn’t seem to be anything good for borrowers in the Trump plan.
Via Politico (with my emphases added):
Selling federal student loan debt raises significant logistical and legal concerns, adding new uncertainty for borrowers. Key questions include what happens to borrower protections—typically more generous than in the private market — and whether the government would continue guaranteeing any of the loans. The federal government enjoys more powerful debt-collection abilities — such as garnishing tax returns or Social Security benefits — than do private lenders.
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