(Bloomberg) -- President Donald Trump said that the Treasury Department or other agencies could potentially take over administering student loans if his administration were to abolish the Education Department, which currently oversees the issue.
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“That’ll be brought into either Treasury or Small Business Administration or Commerce. And we actually had that discussion today,” Trump told reporters Thursday in the Oval Office.
“I think it’ll be brought into Small Business maybe. Kelly really liked it,” Trump added referring to Kelly Loeffler, who heads the SBA.
Trump has said he plans to dismantle the Education Department, handing off its responsibilities to states and other federal agencies. His remarks come amid reports that he could soon sign a directive that would begin the process to close the agency, though he would likely need Congress’ approval to fully abolish it.
The Education Department holds broad responsibilities. In 2024, it distributed approximately $121 billion in federal grants, loans and work-study programs to nearly 10 million students, according to a report. An annual application, known as FAFSA, which it manages has also become a fixture in the college application process, used by universities to help determine eligibility for scholarships.
It also oversees a broad range of K-12 programs, including funding for low-income schools and students with disabilities.
Trump and his allies have assailed efforts by his predecessor, former President Joe Biden, to ease student debt burdens, including a sweeping loan forgiveness plan that was blocked by the courts. The Biden administration in the final days of his term offered more targeted relief for some borrowers.
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