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Trump says student loans will be handled by Small Business Administration

  • President Donald Trump announced that the Small Business Administration will manage the federal student loan portfolio instead of the U.S. Department of Education, stating that outstanding federal education debt exceeds $1.6 trillion, with more than 40 million Americans holding student loans.
  • This announcement follows Trump's executive order aimed at dismantling the Education Department, though only Congress can completely eliminate the agency.
  • Concerns were raised about how this change might affect protections and programs like Public Service Loan Forgiveness, as noted by experts.
  • Experts suggested that neither the Commerce Department nor the Small Business Administration has relevant experience for managing student loans.
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Forbes broke the news in United States on Friday, March 21, 2025.
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