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Appearing in the Oval w/ #Defense Secy #PeteHegseth, #Trump said,“I've decided that the #SBA, the Small Business Administration, headed by #KellyLoeffler, a terrific person, will handle all of the student loan portfolio. We have a portfolio that's very large,"Trump said.

[recall #KellyLoeffler was embroiled in an #InsiderTrading investigation during #COVID after Trump repeatedly downplayed the #pandemic she & other #Republicans invested in #PPE that was in high demand after it spread unchecked]

The federal #StudentLoan portfolio — which includes about $1.6T in loans for ~43M borrowers — is currently overseen by the #Education Dept's office of Federal #Student #Aid (#FSA). That office has been gutted by the recent raft of buyouts, early retirements & last week's broad reduction-in-force [#RIF].

It was not clear, based on #Trump's announcement, how or if the remaining employees & expertise at FSA would be transferred to the SBA.

#Trump said he would move #StudentLoans "out of the Dept of #Education immediately" & that #KellyLoeffler & her staff are "all set for it. They're waiting for it. It'll be serviced much better than it has in the past. It's been a mess."

~8M federal #StudentLoan borrowers are in #legal limbo, not making loan payments, as #Biden-era repayment plans were frozen by a judge for being *potentially* illegal. Borrowers also can't currently enroll in the govt's income-driven repayment plans….

Multiple sources at #FSA who could not speak publicly for fear of #retribution said they were blindsided by the news.

Logistical challenges aside, the role of the office of Federal #Student #Aid as the administrator of the #StudentLoan portfolio is protected by #law. It's not clear how these responsibilities could be #legally moved w/o a vote of #Congress. [not that #Trump cares]

…As recently as Thurs, WH press sec Karoline Leavitt had assured reporters that, "when it comes to #StudentLoans & #PellGrants, those will still be run out of the Dept of #Education."

After announcing these potential changes to the federal student loan portfolio, #Trump then said, "Bobby Kennedy, the Health &Human Services [secretary], will be handling special needs," referring to #RFKJr. []

This appears to be a reference to the federal #law known as the Individuals with Disabilities Education Act (#IDEA), which the #Education Dept administers. The law guarantees students w/ #disabilities the right to a #free, appropriate education &, in 2024, sent ~$15B to schools to help pay for #SpecialEducation services. The law also makes clear that it is the secretary of education's responsibility to administer these funds.

In a social media post, Sen #PattyMurray, D-WA, called the potential changes "a clear violation of #education & #appropriations #law."

The Education Dept has a dedicated Office of #SpecialEducation & Rehabilitative Services, &, as w/the federal #StudentLoan portfolio, it's unclear how these collective responsibilities on behalf of #children w/ #disabilities could be moved legally w/o a vote of #Congress.

In a social media post, #HHS Secy #RFKJr said his agency "is fully prepared to take on the responsibility of supporting individuals with special needs."

Not everyone was convinced.

"This is NOT a minor bureaucratic reorganization — it is a fundamental redefinition of how our country treats #children with #disabilities," said Keri Rodrigues, president of the National #Parents Union, which represents >1,800 parent orgs across the country.