President Trump announced Friday that federal student loan responsibilities will be transferred to the Small Business Administration (SBA), while programs for students with disabilities will move to the Department of Health and Human Services (HHS), as part of his administration’s broader effort to dismantle the Department of Education.
Speaking from the Oval Office, Trump said the SBA, led by Kelly Loeffler, would immediately assume control of the student loan portfolio, calling it “a pretty complicated deal.” He added that HHS, under Secretary Bobby Kennedy, would take over programs supporting students with special needs and school nutrition services.
The decision follows an executive order issued Thursday directing Education Secretary Linda McMahon to begin winding down the department. While full elimination of the agency requires congressional approval, the administration aims to reassign legally required functions and eliminate those not mandated by statute.
Advocacy groups criticized the move, particularly the transfer of special education oversight to HHS, citing concerns about Kennedy’s record on public health. Legal challenges are expected.
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