Trump Transfers Student Loan System to Small Business Administration | Global News Avenue

If you are one of the 43 million Americans with student loans, you can quickly pay the Small Business Administration instead of the Department of Education as part of President Donald Trump’s latest restructuring of the federal government.

Trump said Friday that the SBA, an institution that supports small businesses that support loans and other programs, will handle the country’s $1.6 trillion student loan debt portfolio, part of his demolition of the Education Department. Currently, the U.S. Department of Energy manages loans and relies on several private service companies to handle payments and customer service.

“We have a very large portfolio, a lot of loans, thousands of loans – a simple deal. That comes out of the Department of Education right away,” Trump said at the Oval office on Friday. “It will be much better than the service in the past. It’s a mess.”

On the same day, SBA director Kelly Loeffler said the new home of the loan portfolio cut 43%.

Loeffler posted on X: “As the government’s largest guarantor for commercial loans, SBA is ready to deploy its resources and expertise on behalf of U.S. taxpayers and students.”

Student loan borrowers in recent months Facing interruptionin some cases, a sharp Higher monthly payments Courts on income-driven repayment plans Fighting on fate Former President Joe Biden’s administration has developed a rescue repayment plan.

The move has attracted criticism from at least one of the borrowers who advocated student loans.

“Transferring student loan programs to the SBA is illegal, undoubted, and explicitly attempting to distract the public that Trump has broken the student loan system and is actively defrauding millions of borrowers’ rights,” Mike Pierce, executive director of the Center for Student Borrower Protection, said in a statement.