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Trump Shifts $1.7 Trillion Student Loans to SBA

3/21/2025

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Summary

Story summary

In a bold and controversial move, President Trump has ordered the transfer of federal student loans to the Small Business Administration, effectively dismantling the Department of Education. This decision has sparked worries about the SBA's capacity to handle the staggering $1.7 trillion loan portfolio, particularly amid a significant 43% cut to its workforce. Meanwhile, the Department of Health and Human Services will assume responsibility for special needs programs.

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Story summary

In a bold and controversial move, President Trump has ordered the transfer of federal student loans to the Small Business Administration, effectively dismantling the Department of Education. This decision has sparked worries about the SBA's capacity to handle the staggering $1.7 trillion loan portfolio, particularly amid a significant 43% cut to its workforce. Meanwhile, the Department of Health and Human Services will assume responsibility for special needs programs.