“Trump Says Education Department will no Longer Oversee Student Loans, ‘Special Needs'”

SUMMARY: President Donald Trump announced on Friday that the management of the U.S. federal student loan portfolio and “special needs” programs would be transferred to other federal agencies. The federal student loan portfolio, which manages around $1.6 trillion in loans for 43 million borrowers, will now be overseen by the Small Business Administration (SBA), led by Kelly Loeffler. Trump emphasized that this shift would improve the servicing of loans, which he described as “a mess” under the current Department of Education.

Additionally, Trump stated that the Department of Health and Human Services (HHS) would handle special needs programs, which include the Individuals with Disabilities Education Act (IDEA). This law guarantees students with disabilities the right to an appropriate education. The exact implications of these moves, including how the transfer of responsibilities will occur and whether Congress needs to approve the changes, remain unclear.

This announcement follows Trump’s executive order to close the Department of Education, with details still developing.

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