WASHINGTON: President Donald Trump reassigned key Education Department duties, moving student loans to the Small Business Administration (SBA) and special needs funding to Health and Human Services (HHS).
Loan Management Change
Trump announced that the SBA, led by Kelly Loeffler, will manage the federal student loan portfolio. He emphasized the complexity of handling thousands of loans.
The administration aims to streamline student loan management outside the Department of Education. Trump stated the transition will take effect immediately.
By shifting loans to the SBA, officials hope to align student financing with business-oriented financial strategies.
Special Needs Support
Health and Human Services (HHS), under Secretary Robert F. Kennedy Jr., will oversee funding for students with special needs.
HHS will also manage school nutrition programs and other education-related assistance. Trump described this as a “complex” but necessary move.
The administration believes HHS is better suited for handling special education services and related programs.
Education Department Dismantling
While Congress must approve the full shutdown of the Education Department, Trump signed an executive order initiating the process.
Education Secretary Linda McMahon has been directed to begin the transition, although full closure remains uncertain.
Impact and Reaction
Supporters argue these changes will improve efficiency in education funding and student loan management.
Critics worry about the long-term effects of shifting education responsibilities to agencies outside the traditional system.
Some education advocates fear the SBA and HHS may lack the expertise to handle these programs effectively.
Next Steps
The administration will work on the transition while awaiting congressional action on dismantling the Education Department.
Observers expect legal and political challenges as the process unfolds.
Trump remains confident these shifts will benefit students and families.
