Key Takeaways:

• President Trump has announced the transfer of federal student loans to the Small Business Administration (SBA).
• This decision comes as part of the administration's efforts to dismantle the Department of Education.
• Kelly Loeffler will oversee the management of approximately $1.7 trillion in student loans.
• Critics express concern about the SBA’s ability to effectively manage student loans based on limited experience.
• Programs for students with disabilities will now be handled by the Department of Health and Human Services (HHS).

In a significant policy shift, President Donald Trump announced on Friday that the responsibility for managing federal student loans will be transferred to the Small Business Administration, moving away from the Department of Education as part of a broader plan to dismantle the federal education body. The president made this declaration during a press conference in the Oval Office, emphasizing that this change will take effect immediately.

“I’ve decided that the SBA, headed by Kelly Loeffler, will handle all of the student loan portfolio,” Trump stated, referring to a portfolio that manages around $1.7 trillion in loans. This move follows Trump's recent executive order aimed at restructuring the Department of Education, which has drawn criticism and raised concerns about the future of student loan programs. Advocates argue that shifting these responsibilities could lead to instability for borrowers, especially considering the SBA's recent announcement of significant staff cuts, which could hinder effective management of the new portfolio.

Moreover, Trump appointed Robert F. Kennedy Jr., the head of the HHS, to oversee programs dedicated to special needs and nutrition, indicating an intent to streamline these services as well. However, the transition has raised alarms among disability advocates, who worry about potential repercussions under the new leadership.

While the Trump administration asserts that this restructuring aims to improve the handling of student loans, education experts caution against the feasibility of such changes. Jared Bass from the Center for American Progress emphasized the specialized nature of the Education Department's work, stating that “you can't have programs without people,” suggesting this overhaul could negatively impact service delivery for the 40 million Americans currently holding student loans.

As the administration moves forward with its plans to reshape educational governance, the implications for federal funding, borrower support, and oversight remain a topic of heated debate among lawmakers and advocates alike.

For more details, read the full articles on The Hill, Newsweek, and Business Insider.