President Donald Trump announced on Friday that the Small Business Administration (SBA) will assume control of the Department of Education’s massive student loan portfolio, as part of his broader effort to dismantle the agency and shift greater power over education to the states.
“I’ve decided that the SBA, the Small Business Administration, headed by Kelly Loeffler, a terrific person, will handle all of the student loan portfolio,” Trump told reporters in the Oval Office. He added that the Department of Health and Human Services will take the lead on funding initiatives for students with special needs.
The move comes amid longstanding uncertainty over the future management of a portfolio totaling approximately $1.8 trillion in debt – one of the largest in the country. Trump’s decision follows previous suggestions that the portfolio might be transferred to either the Treasury Department or the SBA. Earlier in the month, Trump had floated the idea that Loeffler “would really like” the portfolio, although earlier discussions had stalled.
In a surprising development, the SBA is simultaneously implementing significant cuts, with CEO Kelly Loeffler announcing a reduction of around 43% of its workforce—roughly 2,700 positions—raising concerns about its capacity to manage such a large portfolio. According to sources familiar with the matter, nearly 40% of the student loans are currently in arrears, which experts warn could trigger an avalanche of new defaults as borrowers adjust to the end of a multi-year pause on payments and changes to more affordable payment programs.
The Education Department has long struggled to find a viable alternative to manage its student debt, and the latest proposal represents a dramatic reorganization of federal oversight in this critical area. Hours before Trump signed an executive order directing Education Secretary Linda McMahon to begin dismantling the agency, White House press secretary Karoline Leavitt stated that the department would retain the student loan portfolio. However, as the order was signed, Trump clarified that the department’s functions would be redistributed among other agencies, without specifying further details.
“The SBA is prepared to work with Congress and the Administration to bring accountability back to America’s student loan program,” Loeffler said in a statement posted on X, citing the agency’s experience as the government’s largest guarantor of business loans.
Critics warn that the transition could be disruptive for millions of borrowers. “It’s a tidal wave coming for an unprepared village,” remarked a former senior Education Department employee who recently departed, speaking to CNN. “The fallout is not even hypothetical now.”
With efforts to restructure federal education policy underway, the fate of the nation’s student loan portfolio remains uncertain, raising questions about the long-term impact on borrowers and the broader financial system.
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U.S. President Donald Trump reiterated on Monday his proposal for the United States to annex Greenland, sparking strong criticism from Greenlandic and Danish officials over a planned visit by a high-level U.S. delegation later this week.
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The Trump administration is expected to exclude sector-specific tariffs from its planned reciprocal levies, which are set to be imposed on April 2, according to reports by Bloomberg News and the Wall Street Journal, citing anonymous officials.
Greenlandic leaders have sharply criticized an upcoming visit by a high-profile American delegation to the semi-autonomous Danish territory, which President Donald Trump has suggested the U.S. should annex.
amsung Electronics announced on Tuesday that co-CEO Han Jong-hee had passed away due to a heart attack, leaving newly appointed CEO Jun Young-hyun in sole charge of the company. Han, 63, had led Samsung since 2022 and was responsible for its consumer electronics and mobile devices division.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
Talks between Russia and the United States, described as intense yet productive, are set to continue with the involvement of the United Nations and other countries, according to Grigory Karasin, a member of the Russian delegation.
U.S. and Russian delegations are expected to release a joint statement today following intense negotiations in Saudi Arabia, where discussions centered on a potential partial ceasefire in the Black Sea.
Ukrainian and U.S. delegations are set to meet on Tuesday in Saudi Arabia, following a day of talks between Russian and U.S. officials in Riyadh aimed at advancing a limited ceasefire proposal for the Black Sea.
Sweden’s Prime Minister Ulf Kristersson stated on Thursday that purchasing U.S. weapons does not pose a security risk for his country, but emphasized the need for Europe to reduce its reliance on American defense systems. His comments come amid growing discussions within Europe.
NASA astronauts Butch Wilmore and Suni Williams completed an unexpectedly long 286-day mission on the ISS, returning to Earth aboard a SpaceX capsule after delays caused by technical issues with Boeing’s Starliner.
Russian President Vladimir Putin agreed on Tuesday to a proposal by U.S. President Donald Trump that Russia and Ukraine cease attacking each other's energy infrastructure for 30 days, the Kremlin said following a lengthy phone discussion between the leaders.
Mexican forces have dismantled a massive meth lab in Zacatecas, dealing a blow to a Sinaloa Cartel faction.
Serbia’s parliament has officially accepted the resignation of Prime Minister Milos Vucevic, setting a 30-day deadline for the formation of a new government or the calling of snap elections.
Italy’s President Sergio Mattarella expressed confidence on Monday that the European Union (EU) has the strength to effectively respond to potential U.S. tariffs.
Tesla's market share in Europe continued its decline in February, according to new data, as sales of the all-electric carmaker dropped for the second consecutive month.
President Donald Trump doubled down on his push for U.S. control over Greenland, stating on Monday that the territory could become a significant part of America's future.
amsung Electronics announced on Tuesday that co-CEO Han Jong-hee had passed away due to a heart attack, leaving newly appointed CEO Jun Young-hyun in sole charge of the company. Han, 63, had led Samsung since 2022 and was responsible for its consumer electronics and mobile devices division.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
amsung Electronics announced on Tuesday that co-CEO Han Jong-hee had passed away due to a heart attack, leaving newly appointed CEO Jun Young-hyun in sole charge of the company. Han, 63, had led Samsung since 2022 and was responsible for its consumer electronics and mobile devices division.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
Talks between Russia and the United States, described as intense yet productive, are set to continue with the involvement of the United Nations and other countries, according to Grigory Karasin, a member of the Russian delegation.
U.S. and Russian delegations are expected to release a joint statement today following intense negotiations in Saudi Arabia, where discussions centered on a potential partial ceasefire in the Black Sea.
Ukrainian and U.S. delegations are set to meet on Tuesday in Saudi Arabia, following a day of talks between Russian and U.S. officials in Riyadh aimed at advancing a limited ceasefire proposal for the Black Sea.
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