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The Bottom Line Federal Student Loans Are Moving from the U.S. Department of Education to Small Business Administration

Keri D. Ingraham
April 18, 2025
Education Policy, Higher Education
2
 Originally published at Independent Women's Forum

On March 21, President Trump announced from the Oval Office that the federal student loan portfolio would move from the U.S. Department of Education to the Small Business Administration.

This announcement came the day after the president signed the “Improving Education Outcomes by Empowering Parents, States, and Communities” executive order into law, which directs the Secretary of Education to take all lawful steps toward closing the U.S. Department of Education.

Moving the federal student loan portfolio out of the U.S. Department of Education is an important step in winding down the department.

Furthermore, it is a commonsense decision to have the Small Business Administration’s financial experts — who already manage a massive number of small loans every day — oversee the approximate $1.6 trillion of loans for 43 million borrowers instead of education policy personnel.

This is a welcome change that is positioned to increase service quality and overall efficiency. It’s also important to note that the terms of the loans won’t change just because the management moves from the U.S. Department of Education to the Small Business Administration.

It is a commonsense decision to have the Small Business Administration’s financial experts — who already manage a massive number of small loans every day — oversee the approximate $1.6 trillion of loans for 43 million borrowers instead of education policy personnel.

Keri D. Ingraham

Federal student loans have been a disaster since the Biden administration’s unlawful measures to cancel student debt. It was an attempt to remove legally binding fiscal responsibility from borrowers who chose to attend college and inappropriately put it on everyday hard-working Americans who didn’t go to college with that debt.

Thankfully, better days are ahead as President Trump continues to deliver on his promise to the American people to dismantle the 45-year massive failure of the U.S. Department of Education by moving key student services to other agencies and returning control back to the states.

Click HERE to listen to Dr. Keri D. Ingraham’s interview on NTD News Today, or watch below.

Keri D. Ingraham

Senior Fellow and Director, American Center for Transforming Education
Dr. Keri D. Ingraham is a Senior Fellow at Discovery Institute and Director of the Institute’s American Center for Transforming Education. She is also a Senior Fellow at Independent Women’s Forum. Dr. Ingraham is a regularly requested guest for national television and podcast interviews, as well as for conference and event speaking engagements. Her articles have been published by The Wall Street Journal, New York Post, The Federalist, The Washington Times, The Epoch Times, Washington Examiner, The Daily Wire, Real Clear Education, The Daily Signal, National Review, The American Spectator, Daily Caller, and a host of other media outlets. Her work has been featured by Fox News, referenced in The Wall Street Journal, and cited in countless publications. Dr. Ingraham has received several invitations to the White House and is quoted on the White House website. Additionally, she has advised Cabinet Members, Governors, and Members of the U.S. Congress. Prior to joining Discovery Institute, Dr. Ingraham spent nearly two decades leading within the field of education as a national consultant, requested conference speaker, head of school, virtual and hybrid academy director, administrator, classroom teacher, and athletic coach.
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