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Recent moves suggest President Donald Trump may push to privatize the federal student loan system, but experts say he could have a hard time getting lenders and lawmakers on board.

Trump recently signed an Executive Order initiating the closure of the Department of Education. In the order, the administration said the Department of Eductions handles more than $1.6 trillion in student debt, equating it to the size of one of the U.S.’s biggest banks, Wells Fargo. Yet, the department has fewer than 1,500 employees in the Office of Federal Student Aid, compared to more than 200,000 employees at Wells Fargo, the order said.

“The Department of Education is not a bank, and it must return bank functions to an entity equipped to serve America’s students,” Trump said in the executive order.

In addition, a day after Trump signed the order, he said the Small Business Administration (SBA) will take on the management of federal student loans. The SBA guarantees loans for small businesses issued by private banks and other financial institutions.

These moves could signal a push to privatize student loans, Mark Kantrowitz, a student loan expert, told Investopedia in an email. The White House and Department of Education did not respond to a requests for comment; however, there is a precedent for a private federal student loan system.

What Would Privatizing Students Look Like?

Federal student loans were facilitated privately with the Federal Family Education Loan (FFEL) program until 2010.

When the FFEL program still provided new loans, the Department of Education worked with private lenders to offer student loans with federal government guarantees. Some borrowers still hold FFEL loans, but in many cases, these borrowers are ineligible for most federal student loan relief programs.

This would be more widespread if student loans were privatized. Borrowers would likely lose federal forgiveness and discharge programs, in addition to flexible repayment options, Kantrowitz wrote in an article for The College Investor.

Some conservative politicians criticize the student loan program for spending too much on forgiveness programs and not incentivizing borrowers to pay back their debt. According to a report from the Government Accountability Office, federal student loans cost the federal government $197 billion as of fiscal year 2021.

“Since private lenders would take financial losses if they lend to students…they have an incentive to steer students toward institutions and programs whose graduates typically earn enough to repay their debts,” said fellows from think tank American Enterprise Institute in a report. “Privatizing the federal student loan program would save taxpayers hundreds of billions of dollars.”

Will Trump Be Able To Privatize Student Loans?

Student loans could return to a privatized system, but it would need Congressional approval, and private servicers may not be willing to take the large student loan portfolio, experts said.

To privatize existing student loans, the federal government would likely need to sell the existing portfolio to private lenders. However, private loan servicers are unlikely to be able to fund more than a trillion dollars through capital markets and bond issues, Kantrowitz said.

“Even with a steep haircut, discounting the portfolio by 50%, they just don’t have the money,” Kantrowitz said. “If they were to try to sell the portfolio for that, how will Congress be able to fund such a huge write-down?”

The federal government would need to provide guarantees or subsidies to make the loans attractive to private lenders. Yet, even with this, private lenders may not have the administrative capacity to manage all student loans and would likely resort to working with existing loan servicers, Kantrowitz wrote.

Citigroup (C) shares rose in early trading Tuesday after the bank reported better-than-expected first-quarter results as volatile markets boosted equities trading.

The firm reported earnings per share (EPS) of $1.96 on revenue of $21.60 billion, while analysts surveyed by Visible Alpha expected $1.84 and $21.19 billion, respectively. Markets revenue rose 12% year-over-year to $6.0 billion, powered by a 23% jump in equities trading revenue to $1.5 billion.

Citigroup shares advanced 2.4% soon after the opening bell Tuesday. They entered Tuesday down 10% in 2025.

Since bank earnings began last Friday, Morgan Stanley (MS), JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS) all posted results that beat analysts’ estimates, but executives have struck a cautious tone about the rest of the year due to uncertainty caused by tariffs.

Citigroup CEO Jane Fraser said she was bullish about the prospects for the U.S. dollar, which is on track to have its worst two-month stretch since 2002.

“When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world’s leading economy, and the dollar will remain the reserve currency,” Fraser said.

UPDATE—April 15, 2025: This article has been updated to include refreshed share prices.

Shares of Allegro MicroSystems (ALGM) tumbled 8% in premarket trading Tuesday after chipmaker ON Semiconductor (ON) announced that it has pulled its offer to acquire the circuit manufacturer.

ON Semiconductor, or Onsemi, last month upped its offer to $35.10 per share, valuing Allegro at roughly $6.9 billion. Allegro rejected the offer, calling it “inadequate.”

Onsemi said Tuesday that it has withdrawn its offer after determining that there is “no actionable path forward.”

“While we continue to believe that a combination with onsemi would be beneficial to all stakeholders of both companies, after careful consideration, we have decided to withdraw our acquisition proposal given the reluctance of Allegro’s Board of Directors to fully engage and explore our proposal,” Onsemi CEO Hassane El-Khoury said.

In February, Onsemi’s fourth-quarter results fell short of estimates as El-Khoury said the firm continues “to navigate this market downturn,” calling 2025 an “uncertain” year. Shares of Onsemi were down less than 1% about 30 minutes before the opening bell.

U.S. stock futures are little changed after investors started the week on a positive note amid announcements of exemptions on some U.S. tariffs; Boeing (BA) stock is moving lower in premarket trading after China reportedly ordered carriers to not take deliveries of more jets; Netflix (NFLX) shares are rising on a report that the company revealed rosy financial projections to staff; Bank of America (BAC) shares are gaining after the financial giant topped first-quarter profit and revenue estimates; and Johnson & Johnson (JNJ) reported better-than-expected results and lifted its sales forecast for the full year. Here’s what investors need to know today.

1. US Stock Futures Little Changed as Investors Watch Tariffs, Earnings

U.S. stock futures are little changed after indexes rose to start the trading week on news of some tech tariff exemptions. Nasdaq futures are 0.1% higher after the tech-focused index gained 0.6% in the prior session. S&P 500 futures and Dow Jones Industrial Average futures are barely changed after both advanced by 0.8% Monday. Bitcoin (BTCUSD) is up 1% to trade at around $85,500, while the 10-year Treasury yield is ticking higher at near 4.4%. Oil futures are declining while gold futures are up slightly.

2. Boeing Stock Falls as Beijing Reportedly Forbids Carriers From Accepting Deliveries

Boeing (BA) stock is falling about 3.5% in premarket trading on a report that Chinese officials told its airlines not to take deliveries of the American company’s jets amid an escalating trade war with the U.S. After President Donald Trump raised tariffs on Chinese imports to 145%, China responded with a 125% tariff on U.S. products, which Beijing argued now made Boeing planes too expensive, according to a Bloomberg report. China also ordered carriers to halt purchases of U.S.-made parts and equipment, the report said.

3. Netflix Stock Rises on Report of Rosy Financial Projections

Netflix (NFLX) shares are more than 2% higher in premarket trading after a report that the streaming giant has laid out a goal to double its revenue by 2030. The Wall Street Journal reported that executives shared the company’s financial goals with senior staff in a meeting, which included reaching a market capitalization of $1 trillion and reaching $9 billion in global ad sales. Netflix, which currently has a market capitalization of around $400 billion, is scheduled to report first-quarter earnings Thursday.

4. Bank of America Stock Gains as Results Surpass Expectations

Bank of America (BAC) stock is rising almost 2% in premarket trading after the financial firm reported better-than-expected quarterly results. The banking giant recorded earnings per share (EPS) of $0.90 on revenue of $27.37 billion. Analysts were projecting $0.82 and $26.80 billion, respectively, per Visible Alpha. CEO Brian Moynihan said the firm is well-positioned to continue growing even “though we potentially face a changing economy in the future.” Entering Tuesday, Bank of America shares had lost roughly 17% of their value this year.

5. Johnson & Johnson Tops Estimates, Raises FY Operational Sales Outlook

Johnson & Johnson (JNJ) reported better-than-expected first-quarter results and lifted its operational sales forecast for the full year. The pharmaceutical and medical technology firm posted adjusted EPS of $2.77 on revenue of $21.89 billion, ahead of Visible Alpha consensus estimates of $2.56 and $21.56 billion, respectively. The company lifted its projected 2025 operational sales range to $91.0 billion to $91.8 billion, up from $89.2 billion to $90.0 billion previously. Johnson & Johnson shares are down about 1% in premarket trading after entering Tuesday up about 7% this year.

Shares of Bank of America (BAC) rose in premarket trading Tuesday after the financial giant’s first-quarter results came in better than expected.

The firm recorded earnings per share (EPS) of $0.90 on revenue of $27.37 billion. Analysts were projecting $0.82 and $26.80 billion, respectively, per Visible Alpha.

Bank of America reported net interest income (NII) of $14.44 billion, in line with the analyst consensus.

Despite largely stronger-than-expected Q1 results thus far, a number of executives at big banks have been less bullish on the macroeconomic outlook for 2025 amid uncertainty about how the Trump administration’s tariffs will impact the economy.

“Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality,” Bank of America CEO Brian Moynihan said. He added that Bank of America is well-positioned to continue growing even “though we potentially face a changing economy in the future.”

Shares of Bank of America, which topped estimates in each quarter of 2024, were up about 2% immediately following the report. They entered the day down roughly 17% since the start of the year.

Johnson & Johnson (JNJ) on Tuesday reported better-than-expected first-quarter results and lifted its sales forecast for the full year.

The pharmaceutical and medical technology firm posted adjusted earnings per share (EPS) of $2.77 on revenue of $21.89 billion. Analysts had expected $2.56 and $21.56 billion, respectively, according to estimates compiled by Visible Alpha.

Johnson & Johnson shares were up about 1% immediately following the report. They entered the day up about 7% since the start of the year.

The company lifted its projected sales range to $91.0 billion to $91.8 billion, up from $89.2 billion to $90.0 billion previously. It also held its adjusted EPS forecast steady at $10.50 to $10.70, “including tariff costs, dilution from the Intra-Cellular Therapies acquisition, and updated foreign exchange.”

Since reporting a disappointing 2025 sales outlook in January, the company closed its nearly $15 billion acquisition of Intra-Cellular Therapies and announced plans to lift its U.S. investment to more than $55 billion over the next four years.

Johnson & Johnson stock slipped earlier this month after a judge rejected its proposed “prepackaged bankruptcy plan” for a subsidiary that would settle thousands of claims alleging its talc products caused cancer.

The states with the cheapest 30-year mortgage refinance rates Friday were California, Florida, New York, Texas, Colorado, North Carolina, Washington, Maryland, and Tennessee. The nine states registered averages between 7.14% and 7.27%.

Meanwhile, the states with the highest Friday refinance rates were West Virginia, South Dakota, Alaska, Arkansas, Louisiana, and Ohio, followed by a large multi-state tie that includes New Jersey and Wisconsin. The range of 30-year refi averages for the lowest-rate states was 7.36% to 7.40%.

Mortgage refinance rates vary by the state where they originate. Different lenders operate in different regions, and rates can be influenced by state-level variations in credit score, average loan size, and regulations. Lenders also have varying risk management strategies that influence the rates they offer.

Since rates vary widely across lenders, it’s always smart to shop around for your best mortgage option and compare rates regularly, no matter the type of home loan you seek.

National Mortgage Refinance Rate Averages

Rates for 30-year refinance mortgages have surged 40 basis points over the last five days, to a 7.31% national average. Refi rates are now at their highest level since July.

Last month, in contrast, 30-year refi rates sank to 6.71%, their cheapest average of 2025. And back in September, 30-year rates plunged to a two-year low of 6.01%.

Meta (META) went to court Monday against the Federal Trade Commission in a landmark antitrust case that could force the social media titan to sell off Instagram or WhatsApp.

The FTC’s complaint, originally filed in 2021, alleges Meta engaged in an “illegal buy-or-bury scheme to maintain its dominance” and “acquired innovative competitors with popular mobile features that succeeded where Facebook’s own offerings fell flat or fell apart.”

If the trial ends in the FTC’s favor, Meta could be forced to break up its social media holdings by selling off apps such as Instagram or the social messaging platform WhatsApp. 

Meta CEO Zuckerberg Seeks Trump Administration’s Help To Resolve Case

The trial comes a couple weeks after Zuckerberg reportedly visited the White House to seek President Donald Trump’s help to resolve the FTC case, according to reporting from the New York Times.

The Meta CEO has also looked to the administration for help in fighting against looming fines from the European Commission, according to reports.

In a statement over the weekend, Meta Chief Legal Officer Jennifer Newstead said, “it’s absurd that the FTC is trying to break up a great American company at the same time the Administration is trying to save Chinese-owned TikTok.”

Shares of Meta slid about 2% in recent trading Monday. The stock is down 9% so far in 2025.

Shares of U.S. automakers jumped Monday afternoon amid speculation the companies could receive some relief from President Trump’s 25% auto tariffs. 

Trump reportedly said Monday he was “looking for something to help some of the car companies,” that “need a little bit of time” to move operations from Canada and Mexico to the United States. 

Shares of Ford (F) surged close to 5% in recent trading, after falling as much as 1% earlier in the day, while General Motors (GM) shares, also down 1% earlier in the session, were up nearly 4%. Shares of Chrysler-parent Stellantis (STLA), down as much as 1.5% midday following a downgrade by UBS, jumped 5%. 

Trump over the weekend announced that smartphones, computers, and other electronics will be exempt from the “reciprocal” tariffs announced earlier this month. The president’s latest tariff about-face has boosted hopes on Wall Street that there may be more carve-outs to come for select companies, industries, and countries. 

Carmakers were among the first companies to enter the crosshairs of Trump’s tariff policies. Ford, GM, and Stellantis’ supply chains were thrown into the spotlight in early February when Trump announced tariffs on Canada and Mexico, where the car companies have a major manufacturing presence. Trump watered down those tariffs but subsequently announced a 25% tariff on all cars and auto parts not compliant with the U.S.-Mexico-Canada Agreement that Trump negotiated in his first term. 

Automakers have warned that tariffs could dramatically increase the cost of manufacturing vehicles and that those costs would ultimately be passed along to consumers.

U.S. drivers may see their auto insurance prices increase on their next renewal as President Donald Trump’s recent tariffs will likely make buying and repairing cars more expensive.

Over the past five years, auto insurance prices have more than doubled as COVID-related supply chain interruptions made car repairs more expensive. However, car insurance price increases have slowed since the beginning of the year and even decreased in March, according to the latest CPI data.

Yet, insurance price increases could pick up again if Trump’s 25% tariff on all foreign-made cars and parts stands as is. The import tax will likely increase the cost of buying and repairing cars by thousands of dollars, and that could cause insurance coverage to get more expensive, experts said.

“Over the past year, many carriers have eased underwriting restrictions or introduced more flexible payment plans to drive new business,” Josh Damico, vice president of Insurance Operations at Jerry, a car insurance comparison app, said in a statement. “But with tariffs potentially raising claims costs and pressuring profitability, some insurers may pull back on these tactics and take a more cautious stance for the remainder of the year.”

The tariffs on cars and others, like those on steel and aluminum, will likely increase car repair and rental costs, pushing average annual full-coverage car insurance prices to about $2,759 by the end of 2025, according to Insurify, an insurance comparison company. Insurify estimates coverage prices will rise by 19% in 2025, 14 percentage points higher than without Trump’s tariffs.

“The consensus is that recent tariffs will raise the price of auto parts and cause insurers to spend more money on repair claims,” said Mallory Mooney, director of sales and service at Insurify, in a press release. “Faced with this cost increase, we expect insurers will have no other option than to pass these losses on to drivers in the form of higher premiums.”

In addition, as part of an escalating trade war between the United States and China, Trump raised the total tariffs levied against Chinese goods to 145%.

In 2024, China exported $16.40 billion worth of vehicles and $11.94 billion of iron or steel to the U.S., according to the U.S. International Trade Commission. Additionally, China was one of the top exporters of other items used to make and repair vehicles, like semiconductors, windshield wipers, and turn signals.

“The degree of impact will depend on how heavily individual manufacturers and repair shops rely on goods sourced from China,” said Damico in an email. “Vehicles with greater parts exposure could see the most pressure.”

Stephen Crewdson, managing director of global business intelligence—insurance for JD Power, said in an email that these cost changes may take a couple of months to reflect in insurance policies, as most policies renew every six months.