Trump Proposes Transfer of Student Loan Management to Small Business Administration

March 21, 2025 - 23:21

President Trump announced on Friday his intention to transfer the oversight of the federal student loan program to the Small Business Administration (SBA). This bold move is seen as a significant component of his broader strategy to dismantle, and potentially eliminate, the Department of Education.

Experts have raised concerns about the legality of this proposed shift, arguing that such a transfer could violate existing laws governing federal student loans. Critics suggest that the SBA, which primarily focuses on supporting small businesses, lacks the necessary expertise and infrastructure to effectively manage student lending.

This announcement has sparked a heated debate among policymakers and educational advocates, who worry about the implications for millions of student borrowers. Many fear that this change could lead to increased confusion and disruption in an already complex student loan system. As the administration pushes forward with its plans, the future of federal student lending remains uncertain.