Trump Gonna Sell Student Debt To Wall Street. Remember How Great That Worked With Mortgages?

[Celerity]

This shit again? We could subprimal scream.

https://www.wonkette.com/p/trump-gonna-sell-student-debt-to



The Trump administration is looking to revive a bad idea it played around with in Trump’s first term, to sell some portion of the government’s $1.6 trillion in student loan debt to private investors, Politico reports, citing three anonymous insiders who know things. The idea would be to reduce the amount of debt held by the Education Department, which currently manages student loans, before moving the whole student loan system over to either the Treasury Department or to imprisoned mafiosi in the Bureau of Prisons maybe. Haha, just joking, Trump would probably pardon those guys anyway.

The idea is being discussed by “senior Education Department and Treasury Department officials,” with the aim of selling off “high-performing” parts of the student debt portfolio so rich fucking banksters can make a profit trading in people’s student loan misery like God intended. The one possible saving grace is that actually going through with the scheme might be more complicated than it’s worth:



Then again, when has “makes little business sense” ever been an impediment to Great Leader? An unnamed “senior administration official” told Politico that the administration is “committed to analyzing all aspects of the federal student loan portfolio,” adding that “Unlike the previous administration, we are focused on ensuring the long-term health of the portfolio for the benefit of both students and taxpayers.” Translation: “Joe Biden actually helped people who were struggling with student debt. We promise to put the screws to them to punish them for going to college and putting on airs. Also, we all went to Ivy League schools but we resent them.”

Federal law allows the Education Department to sell off student debt, but only if taxpayers don’t lose money on the deal. It’s just that no other administration has tried it. An Education Department analysis done during the first Trump administration “ultimately showed that the federal student loan portfolio was worth far less than government accountants had projected.” After COVID hit and Trump was distracted by trying to make the numbers go down by ignoring them, the student debt proposal was shelved. Several of the experts who spoke to Politico said the whole idea seemed dumb, which almost guarantees that Trump will push it as far as possible.



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[Lonestarblue]

1. Everything Trump and his Project 2025 administration does is to hurt people.

He probably assumes that only women and minorities have student loans so he doesn’t care if he destroys their lives.

[Aussie105]

2. Fannie Mae and Freddie Mac

On selling bad mortgages years ago came to mind instantly when I read that.

Anyone remember the NINJA mortgage loans of years ago, their packaging and on selling to banks and the financial disruptions that caused?

NINJA = no income, no job, no assets.
Want a mortgage at sweetheart starter rates that run out and you have no chance of paying it when the time comes?
Sure, there you go!