After a Months-Long, Failed Push to Collect Student Debt, Trump Officials’ Latest Scheme Poses Risks for Borrowers and the Economy
October 7, 2025 | WASHINGTON, D.C. — Politico reported today that the Trump Administration is once again considering plans to sell segments of the $1.6 trillion student loan portfolio. The reporting comes as the Trump Administration has already taken multiple steps to force borrowers further into debt and make it even harder to access affordable monthly payments.
As the Administration works to implement the new One Big Beautiful Bill Act law, the next generation of students and families will be forced to depend on the private student loan market to pay for college. A move to sell off existing federal student loans to investors creates new risks for borrowers and for the economy.
In response, Protect Borrowers’ officials released the following statements:
“Now we know why President Trump and Secretary McMahon are hell bent on squeezing every last dollar out of families with student debt,” said Protect Borrowers executive director Mike Pierce. “Once again, we see that across the Trump Administration, when Wall Street’s demands run against the financial needs of working people, the banks get what they want.”
“Whether President Trump and Secretary McMahon like it or not, students and families have rights and protections when they take on a federal student loan, and the Trump Administration is required to honor them,” said Protect Borrowers policy director, Aissa Canchola Bañez. “Instead of helping the millions of borrowers on the brink of default and reducing the unprecedented backlog of over one million IDR applications from borrowers desperately seeking more affordable payments, the Trump Administration seems more interested in selling out working families to the highest bidder. It is shameful but unsurprising.”
Further Reading
Read the Blog: Despite What Trump and His Allies Think, the Private Market Will Not Save Us
Read the Blog: Private Lenders Would Cash In on Congress’s Student Loan Changes
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About Protect Borrowers
Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.
Learn more at protectborrowers.org or follow us on social @BorrowerJustice.