Trump Proposes Shift of Student Loans to Small Business Administration

Former President Donald Trump has outlined a significant policy shift that would move the management of federal student loans from the Department of Education to the Small Business Administration (SBA). This proposal, announced on March 6, 2025, aims to transform how student loans are administered, aligning them more closely with business and entrepreneurial initiatives.

Trump's plan suggests that the SBA's focus on fostering small businesses could benefit students by offering them more flexible loan repayment options and potential entrepreneurial support. Critics, however, express concerns over the SBA's capacity to handle the vast student loan portfolio effectively, fearing it could lead to administrative challenges and service disruptions for borrowers.

The move is seen as part of a broader Republican strategy to overhaul educational financing and reduce the federal government's role in student lending. This proposal has sparked a heated debate among policymakers, educators, and students, with many questioning its implications for the future of higher education funding in the United States.

• Department of Education
• Donald Trump
• Small Business Administration
• Student Loans

Detailed

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