Trump administration considers sale of federal student loan debt | POLITICO
“Eileen Connor, executive director of the Project on Predatory Student Lending, which has frequently sued the Education Department on behalf of borrowers, said she’s skeptical the administration could strike a deal that benefits both taxpayers and borrowers.
“The only way for it to make economic sense is to structure the deal in a way that really short-changes borrowers,” she said. Much of the value of the federal government’s student debt, she said, comes from powers that private entities don’t enjoy: unlimited time to collect on loans, the ability to garnish Social Security benefits and tax refunds, and broad immunity from lawsuits if the government mishandles borrowers’ debt.
At the same time, Connor said, it’s clear that borrowers have legal protections that can’t be extinguished. “It’s important for any potential buyer and for all student loan borrowers to understand that there are certain rights and protections that are part of their loans that can’t be written out because of the sale to a private entity,” she said.”
