Student Defense Statement on the Small Business Administration’s Takeover of Student Loans

FOR IMMEDIATE RELEASE:
March 21, 2025

MEDIA CONTACT: 
press@defendstudents.org
646-599-2235

Student Defense Statement on the Small Business Administration’s Takeover of Student Loans

Student Defense Vice President Daniel Zibel issued a statement today in response to the Trump Administration’s plan to place the Department of Education’s student loan portfolio under the purview of the Small Business Administration (SBA):

“The Trump Administration clearly doesn’t have the authority to transfer a $1.6 trillion student loan portfolio to the SBA by executive fiat and without Congressional approval. This scheme isn’t just illegal, it is provoking chaos. Instead, we should be having a conversation on how best to administer these essential programs in a way that protects the students the Department of Education has been tasked by Congress to serve.”

“These are incredibly complex programs designed to help increase college attainment while providing protections and resources for students. Administering these programs means also looking out for students with disabilities, those who are harmed by predatory colleges, students suffering from a school closure, and public servants.”

“These chaotic moves are a distraction from the real question: how do we best serve students and promote high-quality opportunities for all.”