05/28/2025

Judge Blocks Trump’s Plan to Move Federal Student Loans to SBA

For now, borrowers’ federal student loans will still be held by the Department of Ed

A federal judge's recent order may foil President Donald Trump’s plans to transfer the country’s more than $1.6 trillion student loan portfolio from the U.S. Department of Education to the Small Business Administration (SBA).

Judge Myong J. Joun of U.S. District Court for the District of Massachusetts wrote in his May 22 preliminary injunction that the Trump administration was required to reinstate more than 1,300 Education Department employees and was blocked from carrying out Trump’s directive "to transfer management of federal student loans and special education functions out of the department."

In other words, federal student loans will stay with the Department of Education, for now.

Please select this link to read the complete article from CNBC.