President Trump announced that the management of the federal student loan portfolio, valued at $1.6 trillion and impacting 43 million borrowers, will be shifted from the Education Department to the Small Business Administration (SBA). This move follows significant staff reductions at the Education Department's office of Federal Student Aid. Trump criticized the current system as disorganized, asserting that the SBA, led by Kelly Loeffler, is better equipped to handle the loans. However, the announcement left many at FSA unexpectedly blindsided about the transition details and its impact on remaining employees and operations.
President Trump announced the immediate transfer of the management of the federal student loan portfolio to the SBA, describing the existing system as a 'mess'.
Trump's decision was unexpected for many at the FSA, who were taken by surprise as recent reductions and departures left the office with fewer resources and expertise.
Kelly Loeffler from the SBA expressed confidence in managing the student loan portfolio, promising to restore accountability and integrity to the system.
Despite the announcement, details on how or if the remaining FSA employees would transition to the SBA remain unclear, raising concerns about expertise loss.
Collection
[
|
...
]