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Trump Considers Auctioning Student Debt Like It's a Garage Sale Catastrophe

KEY POINTS

  • In early February, Undersecretary Nicholas Kent confirmed the Education Department is exploring selling federal student loans to private actors.
  • Senator Elizabeth Warren criticized the move, arguing it would worsen conditions for borrowers by losing federal benefits.
  • Private lenders anticipate a surge of borrowers in 2025 due to new repayment caps and thank Trump’s 'big beautiful' legislation.

In a shockingly candid move, Undersecretary Nicholas Kent confessed in February that the Education Department is flirting—yes, genuinely flirting—with selling off a staggering $1.7 trillion federal student loan mess. This marks the first time anyone officially admitted to peddling America’s academic nightmares to private companies. Senator Elizabeth Warren, face-palming from afar, slammed Trump’s administration for contemplating swapping federal forgiveness plans for Wall Street’s charming ‘we’ll charge you more’ approach. Political intrigue thickened as private lenders gleefully prepped for a borrower feeding frenzy caused by Trump’s own ‘big beautiful’ repayment reforms slated for 2025, hilariously trying to convince lawmakers they’re the new responsible adults. Meanwhile, Kent vows to keep helping borrowers escape ‘the albatross’ of default, presumably by handing them to sharks with nicer suits.

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Source: Businessinsider | Published: 2/23/2026 | Author: Ayelet Sheffey