Trump’s New Student Loan Plan
President Donald J. Trump has taken a powerful step to shrink the size of the federal government and restore common sense to Washington. Through a new executive order, Trump has begun the process of eliminating the Department of Education and transferring the massive federal student loan program to the Small Business Administration (SBA)—a move that’s shaking up the status quo and rattling liberal activists.
The shift is part of a broader effort to reduce government waste, cut red tape, and return control to American taxpayers. The same day Trump signed the order, the SBA announced a bold workforce reduction—cutting nearly 40% of its employees—signaling a leaner, more efficient future for how student loans are handled.
Conservatives have long called for the federal government to get out of education and focus on core priorities. Trump’s latest action delivers on that promise—and has sparked outrage among the same progressive special interests who helped create the student loan crisis in the first place.
Liberals Sound the Alarm—But Americans Want Accountability
Predictably, left-wing groups tied to the bloated higher education system are panicking. Critics claim the SBA lacks experience managing student loans, but millions of Americans already know that the Department of Education has failed them for decades.
“This is about restoring efficiency and accountability,” said SBA Administrator Kelly Loeffler on X. “Whether it’s a loan for a small business or a business degree, the SBA is ready to do the job right.”
Even as bureaucrats complain, average Americans are asking a different question: Why was the Department of Education managing over $1.6 trillion in loans to begin with?
Student Loan Confusion Isn’t New—It’s the Product of Democrat Policies
The current federal student loan system—created and expanded under liberal leadership—has left over 45 million borrowers stuck in confusion, with little guidance and rising debt. Now, as President Trump moves to put the program under smarter management, critics are more worried about losing control than helping borrowers.
Under President Biden, loan forgiveness schemes like the Saving on a Valuable Education (SAVE) Plan promised relief but delivered legal chaos. A recent court ruling declared Biden’s income-driven repayment program illegal, leaving nearly 8 million borrowers in limbo.
Rather than offering solutions, liberal think tanks like the Institute for College Access & Success and the Student Borrower Protection Center are stoking fear, warning of “chaos” and “danger”—without offering any real alternatives.
Trump’s Plan: Smaller Government, Smarter Oversight
As part of the same reform effort, Trump also announced that programs for students with disabilities will be moved to the Department of Health and Human Services (HHS)—a move designed to improve services by placing them under the correct agency.
An Education Department spokesperson reassured borrowers that no changes have taken effect yet, and current repayment plans remain in place for now. However, experts advise borrowers to take simple steps to protect themselves:
- Download your full payment history from the Federal Student Aid website.
- Save documentation related to any loan forgiveness or repayment plans.
- Contact your congressional representatives to demand answers and support.
With over $1.6 trillion in student debt on the books, the stakes are high. But conservatives know the answer isn’t more bureaucracy—it’s bold leadership and government accountability.
The Bottom Line
President Trump’s decision to shift student loans to the SBA reflects his commitment to shrinking government, cutting waste, and protecting taxpayers. Despite the predictable media backlash and liberal outrage, millions of Americans are ready for real change—and this is what it looks like.
For seniors, parents, small business owners, and anyone concerned about the future of education in America, Trump’s move is a step in the right direction.
