WASHINGTON, WV (LOOTPRESS) – President Donald Trump announced Friday that the Small Business Administration (SBA) will take over the management of the federal student loan portfolio, a responsibility currently held by the U.S. Department of Education.
“We have a portfolio that is very large, lots of loans, tens of thousands of loans, pretty complicated deal,” Trump told reporters in the Oval Office. “That’s coming out of the Department of Education immediately.”
According to Trump, the SBA is prepared for the transition. “They’re all set for it,” he said. “They’re waiting for it.”
The federal student loan portfolio exceeds $1.6 trillion, with more than 40 million Americans carrying student debt. The shift in oversight follows Trump’s signing of an executive order on Thursday aimed at dismantling the Department of Education. However, eliminating the agency would require congressional approval.
Consumer advocates have expressed concerns over the potential for errors and privacy risks in the mass transfer of accounts. They also warn that moving student loan management to a new agency could disrupt borrower protections and programs such as Public Service Loan Forgiveness.
The administration has not provided details on how or when the transfer will occur. The move is expected to face scrutiny from lawmakers and advocacy groups worried about its impact on borrowers.
