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Trump says student loans will be handled by Small Business Administration

President Donald Trump said Friday that the Small Business Administration, instead of the U.S. Department of Education, would handle the country’s federal student loan portfolio.

“We have a portfolio that is very large, lots of loans, tens of thousands of loans, pretty complicated deal,” Trump said, speaking to reporters in the Oval Office. “That’s coming out of the Department of Education immediately.”

“They’re all set for it,” the president said of the SBA. “They’re waiting for it.”

Outstanding federal education debt exceeds $1.6 trillion, with more than 40 million Americans holding student loans.

Trump’s announcement comes a day after he signed an executive order aimed at dismantling the Education Department. Only Congress can unilaterally eliminate the agency.

Consumer advocates are worried that the mass transfer of accounts could trigger errors, or compromise borrowers’ privacy. They also raised concerns about how a change in agency might affect protections and programs such as Public Service Loan Forgiveness.

Trump said earlier this month that his administration was looking to task any of the Treasury Department, Commerce Department or the Small Business Administration with federal student loan management.