POLITICS
Student Loans and Special Needs Programs Get a Shake-Up
USASat Mar 22 2025
The U. S. Department of Education is facing big changes. President Trump has decided to move the management of federal student loans and special needs programs to other federal agencies. This move is part of a broader effort to reshape the department.
First, let's talk about student loans. The federal student loan portfolio is huge. It manages about 1. 6 trillion dollars in loans for roughly 43 million borrowers. Currently, the Education Department's office of Federal Student Aid handles this. But now, the Small Business Administration (SBA) will take over. Trump believes this will improve the service. However, many employees at the Federal Student Aid office were surprised by this news. They worry about how this transition will affect their jobs and the expertise they bring to the table.
The SBA, led by Kelly Loeffler, is ready to take on this responsibility. Loeffler tweeted that the SBA is prepared to restore accountability and integrity to the student loan portfolio. But there are questions about how the remaining employees and their knowledge will be transferred to the SBA. The Education Department, White House, and SBA have not provided clear answers yet.
Next, let's discuss special needs programs. These programs, known as the Individuals with Disabilities Education Act (IDEA), are also moving. The Department of Health and Human Services, led by Robert F. Kennedy, will now handle these programs. IDEA ensures that students with disabilities receive a free, appropriate education. It also provides funding to schools for special education services. The Education Department currently has a dedicated office for these programs. It's unclear how this transition will affect the services provided to students with disabilities.
The Education Department has two main responsibilities: administering IDEA and managing the federal student loan portfolio. Moving these responsibilities to other agencies is a significant change. It's also unclear if these moves can be made without Congress's approval.
This announcement comes just a day after Trump signed an executive order to close the Department of Education. The future of the department and these programs remains uncertain. As more details emerge, the impact of these changes on students, borrowers, and employees will become clearer. It's a critical time for education policy in the U. S.
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questions
How will the transfer of the student loan portfolio to the SBA ensure better service for borrowers?
What challenges might arise from transferring the administration of IDEA to the Department of Health and Human Services?
What steps will be taken to ensure a smooth transition of FSA employees and their expertise to the SBA?
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