Trump says Education Dept. to transfer student loan to other agencies

22/3/2025 6:29

U.S. President Donald Trump announced on Friday that critical programs handled by the Education Department for student loans and nutrition would be transferred to other departments as part of his effort to shutter the agency.



Trump, who signed an executive order on Thursday aimed at dismantling the Education Department, told reporters in the Oval Office that its student loans portfolio would be handled by the Small Business Administration. Special needs and nutrition programs would be administered by the Department of Health and Human Services, he said.



"We have a portfolio that's very large, lots of loans, tens of thousands of loans," Trump said. "That's coming out of the Department of Education immediately, and it's going to be headed up by (SBA Administrator) Kelly Loeffler."



The Education Department managed more than $1.6 trillion in student loans for some 44 million recipients as of 2023. White House spokeswoman Karoline Leavitt said on Thursday that the department would continue to manage student loans and Pell Grants, which are designed to help low-income students. Trump's announcement represents a shift from that stance.