The fate of federal student loans and nutritional programs as President Trump calls for the elimination of the Department of Education
With the Department of Education potentially dismantled, questions arise as to what will happen to student loans and other programs.

This week, Donald Trump signed an executive order to dismantle the Department of Education (DoE), raising questions about the future of student loans managed by the agency, as well as federal nutrition programs.
The order signed by the president mandates the Secretary of Education, to close the Department of Education, while determining how the federal government will continue to deliver “services, programs, and benefits that Americans rely on.”
The White House has continuously argued that the states will be empowered to a whole new level and that their control will be the key to improving educational results in US public schools. According to the Trump administration, the executive order “returns control over education to families rather than bureaucracies.”
Trump announces that the Small Business Administration will immediately handle all federal student loans, and RFK Jr is now in charge of "handling special needs and all of the nutrition programs and everything else." pic.twitter.com/m6wGHdGl0i
— Aaron Rupar (@atrupar) March 21, 2025
The future of student loans
On Friday, President Trump addressed the media from the Oval Office to clarify a few more details on the plans to eliminate the DoE.
As far as the management of student loans is concerned, the responsibility will be transferred to the Small Business Administration, and the Department of Health and Human Services (HHS) will oversee “special needs programs and all nutrition programs.”
“We have a very large portfolio, many loans, tens of thousands of them—it’s quite a complex issue. And it will be removed from the Department of Education immediately,” Trump said.
NEW: As part of Pres. Trump's dismantling of the DOE, he said the Small Business Administration will handle "all of the student loan portfolio" while the HHS will "be handling special needs and all of the nutrition programs." https://t.co/MYvvve9oOO pic.twitter.com/AknwAQKOAy
— ABC News (@ABC) March 21, 2025
What Trump needs to dismantle the Department of Education
As with previous measures, President Trump cannot make sweeping reforms with just an executive order. This order will be challenged by the courts, and Congress would likely need to approve the elimination since the body is responsible for establishing it.
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This article was originally published in Spanish, translated with the help of AI, and edited by Maite Knorr-Evans.
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