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Trump's plan to move student loans to the Small Business Association would be 'incredibly messy,' experts warn

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The move, which is likely to face legal challenges, is part of the administration's plan to shut down the Department of Education.
Donald Trump's proposal to transfer student loan management from the Department of Education to the Small Business Administration (SBA) has raised significant concerns among experts. The plan, which aims to treat student loans more like business loans, could lead to a chaotic transition given the vast differences in the operational frameworks of the two agencies. The Department of Education currently manages over $1.6 trillion in student loans, with systems tailored for educational funding, whereas the SBA focuses on supporting small businesses with a much smaller loan portfolio. Critics argue that this shift could disrupt existing loan servicing, complicate income-driven repayment plans, and potentially lead to administrative nightmares due to the SBA's lack of experience with the scale and specifics of student loan management. Additionally, there are worries about the potential loss of consumer protections and the impact on loan forgiveness programs, which are not part of the SBA's traditional remit.

Read the Full MarketWatch Article at:
[ https://www.msn.com/en-us/money/other/trump-s-plan-to-move-student-loans-to-the-small-business-association-would-be-incredibly-messy-experts-warn/ar-AA1BpvUb ]