Trump Transfers Student Loans, Programs to SBA, HHS

President Donald Trump announced a significant shift in the management of federal student loans, transferring responsibility from the Department of Education to the Small Business Administration (SBA) and moving special needs programs to the Department of Health and Human Services (HHS). This decision is part of a broader effort to reduce the size of the Education Department, which Trump claims is bloated and inefficient. White House press secretary Karoline Leavitt assured that critical programs, including student loans and Pell Grants, would still be managed by the department, a statement Trump later contradicted. Concerns have emerged about the impact of these changes on the approximately $1.6 trillion student loan portfolio and the effectiveness of the new management entities, particularly given that the SBA recently announced a significant workforce reduction. Critics fear that these moves may compromise the quality of services and support for borrowers. The administration's plan aligns with ongoing Republican efforts to decentralize education policy and shift responsibilities to state and local levels.