On a Friday, President Donald Trump made a noteworthy announcement that the Small Business Administration (SBA) will now oversee the federal student loan portfolio, replacing the U.S. Department of Education in this role. Addressing reporters from the Oval Office, Trump described the portfolio as a “very large, intricate collection of tens of thousands of loans,” emphasizing the complexity of the task. He stated, “This responsibility is transitioning away from the Department of Education right away.”
The president reassured that the SBA is fully prepared for this new responsibility, stating, “They are ready to take it on.” This move transitions the management of over $1.6 trillion in outstanding federal education debt, which impacts more than 40 million Americans currently holding student loans.
This decision follows closely on the heels of an executive order Trump signed just the day before, which was directed at dismantling the Education Department. It’s important to note that while executive orders can initiate such processes, only Congress holds the authority to eliminate a federal agency outright.
As this is a developing story, further updates are expected, so stay tuned.
