Approximately 45 million Americans owe a cumulative $1.6 trillion in student loan debt to the federal government. For context, America’s national debt is approximately $38 trillion. In response, the Trump administration is considering selling portions of student loan debt to the private market, raising concerns about the impact on borrowers and taxpayers.

Federal student loan laws allow the Education Department to sell debts after liaising with the Treasury Department, but only if it does not cost taxpayers money. Such a sale would have little precedent, with doubts about its benefits for borrowers and taxpayers. Experts believe only the wealthiest investors would benefit, potentially harming borrowers.

Economists and experts are skeptical of the sale, noting that private entities lack the federal government’s collection advantages and legal protections for borrowers. Potential destabilization of borrower protections and uncertainties in repayment programs raise concerns about the impact of transitioning debt to private entities.

Experts like Preston Cooper and Mike Pierce believe that the sale makes little fiscal sense and would likely benefit wealthy investors over taxpayers and borrowers. The move has raised questions about the administration’s priorities and its potential impact on working people versus Wall Street demands.

Read more at Yahoo Finance: If Trump Sells Your Student Loan Debt, Would That Help or Hurt You?