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Eugene

(64,131 posts)
Tue Mar 25, 2025, 12:30 PM Tuesday

'Borrowers have zero power': Trump moving student loans to SBA sparks concern, confusion

Source: The Hill

‘Borrowers have zero power’: Trump moving student loans to SBA sparks concern, confusion

by Lexi Lonas Cochran - 03/25/25 6:00 AM ET

President Trump moving student loans from the Education Department to the Small Business Administration (SBA) is rattling those affected, who say it is prime evidence that the White House has no real plan for its efforts to dismantle the Department of Education.

Trump signed an executive order Thursday seeking to wind down the Education Department, and he said student loans would move to the SBA the next day — the same day that agency announced it was cutting 40 percent of its workforce.

While advocates have been displeased with the student loan system for a long time, they worry more problems would be created than solved by taking the biggest program the Education Department controls and giving it to an agency that is seeing a sweeping reduction in force.

“Borrowers right now are already having to experience an unprecedented level of chaos and uncertainty,” said Aissa Canchola Bañez, policy director for Student Borrower Protection Center.

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Read more: https://thehill.com/homenews/education/5211381-borrowers-have-zero-power-trump-moving-student-loans-to-sba-sparks-concern-confusion/

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