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American Focus > Blog > Education > Trump Cleaves Student Loan and Special Education Services From Education Dept.
Education

Trump Cleaves Student Loan and Special Education Services From Education Dept.

Last updated: March 21, 2025 1:47 pm
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Trump Cleaves Student Loan and Special Education Services From Education Dept.
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President Trump made a significant announcement on Friday regarding the restructuring of the Education Department. He revealed that the department would no longer be responsible for managing the nation’s $1.6 trillion student loan portfolio or overseeing special education services. Instead, student loans will now fall under the jurisdiction of the Small Business Administration, while special education services and nutrition programs will be overseen by the Department of Health and Human Services.

This move, according to President Trump, is aimed at improving the quality of education while reducing costs. He expressed his confidence that the restructuring would lead to better educational outcomes at a fraction of the current expenditure. The President emphasized that these changes would be implemented immediately and believed that they would be beneficial in the long run.

The groundwork for this decision was laid out by an executive order issued by President Trump the day before. This order was intended to initiate the closure of the Department of Education, a move that would require approval from Congress. Since taking office, the Trump administration has significantly reduced the department’s workforce and eliminated millions of dollars in grants. By reassigning its primary functions, the agency is further weakened.

In the executive order, President Trump drew a comparison between the size of the federal student loan portfolio and that of Wells Fargo, highlighting the disparity in staffing between the two entities. He argued that the Education Department is not equipped to handle banking functions and should relinquish these responsibilities to a more suitable entity.

The transfer of these major programs from the Education Department to other agencies, such as the Small Business Administration and the Department of Health and Human Services, raises concerns. Both agencies are undergoing staffing reductions, with the Small Business Administration announcing a 43% cut in its workforce and Health and Human Services offering buyouts to most of its employees. These changes may have implications for the efficiency and effectiveness of the programs being transferred.

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Furthermore, the leadership of these agencies, particularly Robert F. Kennedy Jr. at the Department of Health and Human Services, raises questions. Kennedy has been vocal about improving nutrition and addressing chronic diseases in children. However, his controversial views on vaccines and diet have sparked debates and raised concerns about his ability to lead effectively.

Overall, President Trump’s decision to restructure the Education Department’s responsibilities has significant implications for the education system and the delivery of services to students. The success of these changes will depend on how effectively the new agencies can adapt to their expanded roles and responsibilities.

TAGGED:CleavesDeptEducationLoanServicesspecialStudentTrump
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