SBA May Oversee Student Loans, Trump Announces

Former President Donald Trump has proposed a significant shift in how the federal government manages key programs. During a recent address, he indicated that the Small Business Administration (SBA) could be tasked with overseeing the federal student loan program. Currently, the Department of Education handles the complex administration of student loans, including disbursement, repayment, and loan forgiveness programs.

Trump also suggested that the Department of Health and Human Services (HHS) would assume responsibility for special education programs and school nutrition initiatives. These programs are presently managed primarily by the Department of Education and, in the case of school nutrition, in conjunction with the Department of Agriculture.

The rationale behind these potential changes, according to Trump, is to streamline government operations and enhance efficiency. He believes that the SBA's experience in managing financial programs for small businesses could be transferable to student loan administration. Similarly, he argued that HHS's expertise in health and nutrition makes it a logical fit for overseeing related educational programs.

However, the proposed changes have drawn mixed reactions. Some experts question whether the SBA and HHS have the necessary infrastructure and expertise to effectively manage these large and complex programs. Others argue that the shift could lead to greater accountability and responsiveness to the needs of students and families. The potential impact on borrowers and students remains to be seen.