Washington D.C. - In a surprising announcement, President Trump revealed that the Small Business Administration (SBA) will be taking over the management of federal student loans. This decision follows the signing of an executive order aimed at significantly reshaping the Department of Education.
The SBA's new responsibilities will include handling loan servicing, managing collections, and overseeing various administrative functions related to student loans. The White House claims this shift will streamline processes and improve efficiency for borrowers.
However, the move has sparked debate among education policy experts. Some question the SBA's expertise in managing a portfolio as large and complex as the federal student loan system. Others are concerned about potential disruptions during the transition period. The long-term effects on borrowers and the overall accessibility of higher education remain to be seen. The Department of Education will be dismantled over the next year, according to the executive order.
SBA to Manage Student Loans Under Trump Executive Order
President Trump has signed an executive order transferring the management of federal student loans to the Small Business Administration (SBA). This move comes as part of a broader effort to restructure the Department of Education. The SBA will now be responsible for loan servicing, collections, and related administrative tasks. Experts are analyzing the potential impact on borrowers and the overall student loan system.
Source: Read the original article at NBC