Trump delivers on a generational conservative goal, but it could be risky for Republicans as well as students...

Trump Administration Weighs Sanctions on Foreign Funders of Pro-Hamas Campus Protests...

Trump says Education Department will no longer oversee student loans, 'special needs'...

Trump 'Fully Supports' Israeli Actions In Gaza: White House...

Conor McGregor Confirms Run for President Days After Meeting with Trump...

Donald Trump Announces Major Student Loan Change

On Friday, President Donald Trump announced that Kelly Loeffler at the Small Business Administration will take over federal student loans from the Department of Education.

Newsweek reached out to the Small Business Administration for comment via email.

Why It Matters

On Thursday, Trump signed an executive order to dismantle the Department of Education, which sparked questions about the future of student loans.

The DOE currently oversees federal student loan programs, distributes financial aid and enforces policies meant to protect borrowers from predatory lending practices. Transferring the student loan programs to another agency could create uncertainty for borrowers.

What To Know

Trump announced the change from the Oval Office, stating it would go into effect "immediately."

"I do want to say that I've decided that the SBA, the Small Business Administration, headed by Kelly Loeffler, a terrific person, will handle all of the student loan portfolio," Trump said. "We have a portfolio that's very large. Lots of loans. Tens of thousands of loans. Pretty complicated deal. That's coming out of the Department of Education immediately."

He said he believes the student loans will be serviced "much better" by the Small Business Administration than in the past.

Meanwhile, the Small Business Administration announced on Friday that it would cut its staff by about 2,700 jobs, or 43