Trump says Education Department will no longer oversee student loans, 'special needs' - NPR

Byline: Jamie Reynolds

In an unexpected turn of events, President Trump has announced that the Education Department will no longer oversee federal student loans, handing over the responsibility to the Small Business Administration (SBA). The president suggests this move is an attempt to streamline operations and improve the efficiency of the loan process. This decision has sent ripples through the education community, sparking questions and debate over the potential impacts on students and the loan system as a whole.

Adding to the surprise, Trump hinted at the possibility of the Department of Health and Human Services (HHS) taking over special education oversight, a responsibility traditionally held by the Education Department. As these changes loom on the horizon, educators, students, and policy-makers are left grappling with the implications and seeking clarity on the administration's plans.

President Trump has announced a notable shift in the administration of federal student loans. Henceforth, the oversight of these loans will be under the jurisdiction of the Small Business Administration (SBA), moving away from the Education Department. This change marks a significant departure from the traditional role of the Education Department, which has been responsible for federal student loans for decades.

The rationale behind the move, as expressed by the President, is to streamline the process and make it more efficient. The SBA, which has a solid track record of managing loans for small businesses, is seen as being well equipped to handle this additional responsibility. However, the shift raises questions about the implications for student borrowers and the potential changes in policies and practices.

Furthermore, it remains to be seen how this change will affect the Education Department's role in other aspects of education policy and administration. The move could potentially lead to a reevaluation of the roles and responsibilities of various federal departments in education. It also signals a potential shift in the federal government's approach to student loan management.

As the transition takes effect, it will be crucial for student loan borrowers to stay informed and adapt to any changes in loan management procedures. The development also necessitates a thorough examination of the SBA's preparedness to handle this new responsibility, and its potential impact on the student loan landscape.

While the president's announcement about the shifting of federal student loans to the Small Business Administration raised many questions, his hint towards a shift in oversight for special education was also met with a mix of curiosity and concern. The proposal that the Department of Health and Human Services (HHS) may take over the administration of special education from the Education Department could change the landscape of special education in the United States.

Experts have been quick to point out that this potential change could have significant implications for how special education services are delivered and funded. Although the HHS does have experience in health-related aspects of special education, the department does not have the same level of experience in the educational aspects that the Education Department possesses.

While some see potential benefits, such as increased focus on the health and well-being of special needs students, others worry about the potential downsides. The concern is that this move could lead to a greater emphasis on the medical aspects of disability at the expense of educational growth and achievement.

As with the proposed changes to student loan oversight, it is clear that any shift in the administration of special education will require careful consideration and planning to ensure that the needs of all students are met.

President Trump's announcement also hinted at the possibility of the Department of Health and Human Services taking over special education oversight. This move could significantly change how special education services are administered and delivered in the U.S.

According to Dr. Sandra Hughes, a special education expert and professor at the University of California, the shift might not be entirely negative. "While the Education Department has traditionally overseen special education, the Department of Health and Human Services has a broader scope and more resources that could potentially benefit students with special needs. However, this would require a careful restructuring and a clear focus on education within the department," she said.

Nonetheless, critics worry that the transition could disrupt services for students with special needs. The Department of Health and Human Services, while equipped to handle health-related issues, may not have the same expertise in educational matters. Many fear that the move could lead to a lack of continuity in services, potentially resulting in gaps in service provision.

"We need to ensure that any changes made in the administration of special education services are done with the best interests of the students in mind," Dr. Hughes added. "This means involving educators, parents, and students in the decision-making process, and ensuring that the transition is smooth and doesn’t disrupt the delivery of critical services."

While President Trump’s announcement has sparked a wave of speculation and concern, the details of the transition remain to be seen. As the nation awaits further information, the special education community is bracing for potential changes and their implications.

In a significant shift from traditional practices, President Trump has announced the relocation of federal student loan oversight from the Education Department to the Small Business Administration. This move has raised questions about the potential impact on borrowers and the agency's ability to handle such a massive portfolio. Additionally, the hint at the Department of Health and Human Services taking over special education oversight has left stakeholders waiting for more concrete details.

The implications of these changes are as yet unclear and will depend greatly on the implementation strategies chosen by the new overseeing departments. It is crucial for all involved parties to closely monitor these transitions to ensure that the needs of the students and special needs individuals are met effectively and efficiently.

As with any significant policy shift, there will be a period of adjustment. The success of these changes will be gauged by their impact on the students and special needs individuals who rely on these services. All eyes will be on the Small Business Administration and the Department of Health and Human Services as they take on these new roles in the coming months.

Source: https://www.npr.org/2025/03/21/nx-s1-5336330/trump-education-department-student-loans-special-education-fsa