Trump Shifts Student Loans to SBA and HHS Takes Special Needs

President Donald Trump has ordered the Small Business Administration to take over student loan programs. In a bold move to dismantle the Department of Education he also tasked Health and Human Services with special needs and nutrition duties. This overhaul aims to streamline government and cut costs.

Trump announced the plan in a speech vowing to end the Education Departments bloated bureaucracy. He argued the SBA is better suited to manage the 1.6 trillion dollar student debt load efficiently. Critics warn this could disrupt aid for millions of borrowers and spark legal challenges.

HHS will now oversee programs like special education and school lunches previously under Education. Trump claimed this aligns with his goal to prioritize health and welfare over federal overreach. Supporters say it reflects a practical shift to agencies with proven expertise.

The Education Department has faced conservative ire for years over issues like student loans and regulations. Trump has long pledged to abolish it entirely a promise echoed by his base. This move sidesteps Congress which has resisted past efforts to shutter the agency outright.

Student loan borrowers could face chaos as the SBA lacks experience in this arena experts caution. The transition may delay loan forgiveness programs already plagued by delays. Democrats blasted the plan as reckless and vowed to fight it through legislation or lawsuits.

HHS inherits a massive portfolio including 13 million students with disabilities. Advocates worry funding cuts could harm vulnerable kids under this realignment. Trump insisted private sector principles will improve outcomes for all involved.

The SBA will need to hire thousands to handle loans raising questions about readiness. Education Secretary Betsy DeVos has not commented on her departments fate. Insiders say Trump aims to finalize this before his term ends to cement his legacy.

This shakeup ties into Trumps broader push via DOGE to slash government waste under Elon Musk. It faces steep hurdles but signals his intent to reshape federal roles. Borrowers and families now brace for a turbulent shift in how aid is delivered.