Trump says student loans will be handled by Small Business Administration

President Donald Trump said Friday that the Small Business Administration, instead of the U.S. Department of Education, would handle the country's federal student loan portfolio. "We have a portfolio that is very large, lots of loans, tens of thousands of loans, pretty complicated deal," Trump said, speaking to reporters in the Oval Office. "That's coming out of the Department of Education immediately."

Trump says student loans will be handled by Small Business Administration

 

Honestly, it might be a good thing. Taking a student loan for college is like taking a loan to start a business. Who knows the it is hard to get student loans, colleges start to decrease their tuition and fees.

 

Again, every other developed nation has figured higher education out, and the solution was never to further privatize education.

 

The loan market is based on borrowers' current ability to repay. Student loans are based on borrowers' future ability to pay. For the market to address that sector, they'd have to charge usury-level rates.

 

Trump has changed his mind. He’s decided to keep Department of Education and continuing processing those loans there.

Why do I feel that he doesn’t think through his decisions?

 

Sigh

 

Can you post a link to the story. When I search all I can find is the SBA story.

 

No other loan situation takes into account one's education or potential earning power. It's all about the present.

 

I don't think he does. I think his staff does...after the fact. That's why they're going around cleaning up after him almost every day.

 

A college loan doesn’t necessarily do that either.

 

Can you provide a link to the story. All I can find is the SBA transfer not that he changed his mind.

Apparently, according to one story income adjusted payment ended so one attorney said her payments went from $500 a month to $2400 a month. She is suing the Department of Education and the Secretary.

 

Thank you for pointing this out!

I apologize, I think the breaking news article I read must have had their signals crossed. Sorry I can't find the exact article I first read. Here's an article about the situation. It's a very recent article on the topic.

Trump Says Student Loan System Is Moving To The SBA — But It May Face Legal Challenges
quote:
As the President was signing the order, White House press secretary Karoline Leavitt told reporters, “When it comes to student loans and Pell Grants, those will still be run out of the Department of Education."
https://www.forbes.com/sites/adamminsky/2025/03/21/trump-says-student-loan-system-moving-to-sba-jeopardizing-loan-forgiveness-and-repayment-programs/

I don't care if this stuff is handled by the Department of Education or even if there is a Department of Education. I just think taking a chainsaw to government is a really bad idea. That technique will more likely work on an organization like Twitter with a few thousand employees but not on a huge organization with millions of employees like the federal government. This is being done without first figuring out the details of what the organizations are really responsible for and what the people are doing. I don't believe Trump and Musk are really interested in cutting fraud and waste. This is shown by the fact that their first order of business was firing all the Inspector Generals. It is the job of the Inspector Generals to eliminate fraud and waste. They were fired instead of being consulted with on how best to cut fraud and waste in their departments. They weren't even talked to before they were fired!

 

What could happen to financial aid without the Department of Education

President Donald Trump has officially moved to dismantle the Department of Education, but said federal funding for core programs, including Pell Grants and student financial aid, will be unaffected. The president cannot unilaterally abolish a federal agency without the approval of Congress. However, in the executive order signed Thursday, he instructed Secretary of Education Linda McMahon "to the maximum extent appropriate and permitted by law, take all necessary steps to facilitate the closure of the Department of Education."

What could happen to financial aid without the Department of Education