From PBS NewsHour.

President Donald Trump announced Friday that the Small Business Administration, headed by Kelly Loeffler, will be taking over the management of federal student loans. The news follows his signing of an executive order to shutter the Department of Education a day prior.

“They’ll be serviced much better than they have in the past," Trump said from the Oval Office. "It’s been a mess.”

Also on Friday, the SBA announced plans lay off about 2,700 employees, or around 43 percent of the agency’s workforce.

According to the Education Data Initiative, as of 2024, student loan debt in the United States totaled over $1.7 trillion, held by more than 42 million Americans.

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