In a significant policy shift, President Donald Trump announced that the management of federal student loans will be transferred from the Department of Education to the Small Business Administration (SBA). This announcement follows his executive order aimed at eliminating the Department of Education. Trump expressed confidence that the SBA could handle the complex student loan portfolio, emphasizing the need for improved servicing. Additionally, he indicated that the Health and Human Services Department will take over special needs and nutrition programs, but specifics on the logistics remain unclear, raising concerns about the SBA's readiness to manage student loans effectively.
We have a portfolio that's very large, lots of loans, tens of thousands of loans, pretty complicated deal, and that's coming out of the Department of Education immediately.
It's unclear how the SBA will manage the federal student-loan portfolio. Trump's executive order said that Education Secretary Linda McMahon should take steps to close the department.
#student-loans #department-of-education #small-business-administration #trump-administration #policy-changes
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