Transfers Student Loans and Nutrition Programs
In a major shake-up, President Donald Trump has announced plans to Dismantle the Education Department, shifting key programs like student loans and nutrition assistance to other federal agencies (Reuters).
Under the executive order signed on Thursday, the Small Business Administration (SBA) will now oversee the student loan portfolio, which currently manages more than $1.6 trillion in loans for around 44 million borrowers. Meanwhile, the Department of Health and Human Services (HHS) will take over special needs and nutrition programs.
Trump’s Plan to Reshape Education Policy
Speaking from the Oval Office on Friday, Trump explained his reasoning behind the move.
“We have a portfolio that’s very large—lots of loans, tens of thousands of loans,” he said. “That’s coming out of the Department of Education immediately, and it’s going to be headed up by (SBA Administrator) Kelly Loeffler.”
This shift marks a departure from previous White House statements, which had indicated that the Education Department would continue handling student loans and Pell Grants. Instead, Trump’s latest decision moves one step closer to his broader goal of reducing the department’s influence something long favored by conservatives.
A Step Toward Shutting Down the Education Department?
Although Trump cannot fully eliminate the department without Congressional approval, his administration has taken aggressive action to weaken it. The White House has already fired half of the department’s staff and transferred its most critical programs elsewhere—moves widely praised by conservatives who argue the agency is inefficient.
Democrats, education advocates, and civil rights groups have pushed back, warning that gutting the department could harm students, lower education standards, and reduce protections for vulnerable groups.
The White House, however, defends the decision, pointing to poor test scores and literacy rates as evidence that the Education Department has failed in its mission.
What’s Next for Student Borrowers?
Experts warn that shifting student loans to the SBA could create problems for borrowers. James Kvaal, a former under secretary of education, cautioned that millions of borrowers could struggle to manage their loans, especially as many are already behind on payments.
“Cutting the staff in half—and transferring the work to a wholly new agency—is a massive workload burden just when vulnerable borrowers need help the most,” Kvaal said.
Meanwhile, the SBA itself announced on Friday that it is cutting its workforce by 43%, raising concerns about how well it can manage the influx of student loan responsibilities.
HHS to Oversee Special Needs and Nutrition Programs
As part of the restructuring, Trump also confirmed that HHS Secretary Robert F. Kennedy, Jr. will oversee special needs education and school nutrition programs.
“Those two elements will be taken out of the Department of Education,” Trump said, emphasizing that he believes states, parents, and local school boards should play a bigger role in shaping education policy.
The Bigger Picture: Project 2025 Influence?
Trump’s decision closely aligns with the conservative ‘Project 2025’ blueprint, which proposed moving Education Department programs to other agencies in an effort to dismantle the education department entirely. While Trump distanced himself from the plan during his campaign, many of its ideas have shaped his policies since taking office.
With these (Dismantle the Education Department) changes already in motion, the future of federal education policy remains uncertain, and millions of students, teachers, and families are left wondering what comes next.
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