Trump Proposes Moving Student Loans to SBA

President Trump announced that the student loan portfolio would be moved to the Small Business Administration (SBA), but did not provide details on how that move would be carried out. Current law requires the Department of Education to manage the student loan portfolio.

It remains unclear if Trump intends for the Free Application for Federal Student Aid or the Pell Grant program to also move to the SBA.

Moving the student loan portfolio to the SBA, as well as the executive order to dismantle the Department of Education, cannot proceed without authorization from Congress. Sen. Bill Cassidy (R-LA), chair of the Committee on Health, Education, Labor & Pensions has indicated that he will introduce a bill to shutter the Department entirely, however, it is unlikely the bill will receive enough support in the Senate to pass.

For more information, please contact:
Justin Monk