Trump Moves Student Loans, Special Education Programs Out of Education Department

President Donald Trump announced Friday that the federal student loan portfolio and special education programs will no longer be overseen by the U.S. Department of Education. The move comes as part of his broader plan to dismantle the department.

Speaking from the Oval Office, Trump said the Small Business Administration (SBA), led by Kelly Loeffler, will now manage the student loan portfolio, which includes $1.6 trillion in loans for about 43 million borrowers. He claimed the shift would improve accountability and service. Meanwhile, special education responsibilities under the Individuals with Disabilities Education Act (IDEA) will transfer to the Department of Health and Human Services, under Secretary Robert F. Kennedy.

These changes follow a major staff reduction at the Department of Education, including cuts to the Office of Federal Student Aid (FSA), which currently manages student loans. Staff at FSA were reportedly caught off guard by the announcement.

Legal experts note that transferring these core functions may require congressional approval. This development follows Trump’s executive order Thursday directing Education Secretary Linda McMahon to begin closing the department altogether.

The White House, Education Department, SBA, and HHS have not provided further details.

Source: NPR