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Trump Orders Immediate Shift of Student Loans to SBA and Disability Programs to HHS

The restructuring marks a significant step in the administration's efforts to reduce the Department of Education, but legal challenges are anticipated.

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Overview

  • President Trump announced the immediate transfer of federal student loan management to the Small Business Administration (SBA).
  • Programs for students with disabilities will now fall under the Department of Health and Human Services (HHS), led by Bobby Kennedy.
  • The administration aims to dismantle the Department of Education as far as legally permissible, though its complete elimination requires congressional approval.
  • A 40% workforce reduction at the SBA raises concerns about its ability to manage the $1.6 trillion student loan portfolio effectively.
  • Advocates for students with disabilities have criticized the move to HHS, citing concerns about leadership and potential impacts on vulnerable populations.