Trump says student loans, special needs programs will be moved to new departments

ABC News - Mar 21st, 2025
Open on ABC News

President Donald Trump announced a significant restructuring of the Department of Education by reallocating its key functions. The Small Business Administration (SBA), led by Kelly Loeffler, will now manage the $1.6 trillion student loan portfolio, while the Department of Health and Human Services (HHS), under Robert F. Kennedy Jr., will oversee special needs and nutrition programs. Trump assures that core functions like Pell Grants and Title 1 funding will remain intact, though the transition process was not detailed. Legal challenges are anticipated, particularly concerning the Higher Education Act of 1965, which mandates that student aid be administered by the Department of Education.

The plan faces criticism and potential legal battles, as the American Federation of Teachers and its president, Randi Weingarten, have vowed to challenge the move in court. The SBA, already dealing with budget cuts and a reduction in workforce, will need to adapt to handling a significantly larger loan volume. The Federal Student Aid Office's future is uncertain, as it employs over 1,000 people who may be affected by these changes. The move raises questions about the feasibility and effectiveness of such a reorganization, with implications for millions of students and the broader education system.

Story submitted by Fairstory

RATING

5.8
Moderately Fair
Read with skepticism

The article covers a timely and significant topic concerning proposed changes to the Department of Education and the management of student loans, which are of high public interest. It presents key claims and reactions, primarily from President Trump and the American Federation of Teachers, but lacks a broad range of perspectives and detailed analysis. This limits its balance and potential impact on public discourse and policy development.

The article's clarity and readability are strengths, as it uses clear language and structure to present the main points. However, it could benefit from additional context and diverse viewpoints to enhance engagement and provide a more comprehensive understanding of the issue.

Overall, while the article addresses a controversial and impactful topic, it would benefit from greater depth, transparency, and source diversity to fully realize its potential to inform and influence public opinion and policy discussions.

RATING DETAILS

6
Accuracy

The article presents several key claims that require verification to assess their factual accuracy. For instance, the claim that the Small Business Administration (SBA) will take over the management of student loans from the Department of Education is significant. This claim needs to be verified against official announcements or legal documents outlining the transfer process and the SBA's preparedness to handle a $1.6 trillion portfolio.

Another claim is that the Department of Health and Human Services (HHS) will manage special needs and nutrition programs. The article does not provide detailed information on how these programs will be integrated into HHS's existing framework, which raises questions about the feasibility and accuracy of this claim. Additionally, the potential legal challenges mentioned in the article, such as those related to the Higher Education Act of 1965, require further exploration to understand the legal implications of such a transfer.

The article also mentions planned reductions in SBA staff, which could affect the agency's capacity to manage additional responsibilities. This claim requires verification through official SBA statements or reports detailing the agency's staffing and operational plans. Overall, while the article presents several factual claims, it lacks sufficient detail and corroborating evidence to fully assess their accuracy.

5
Balance

The article presents a limited range of perspectives, primarily focusing on President Trump's statements and the potential legal challenges from the American Federation of Teachers. This creates an imbalance, as it lacks viewpoints from other stakeholders, such as the Department of Education, HHS, or independent experts on education policy.

By not including these perspectives, the article may inadvertently favor the narrative presented by the Trump administration and its opponents, without providing a comprehensive view of the issue. The absence of comments from the agencies directly involved in the proposed changes is a notable omission, which could have added depth and balance to the story.

Furthermore, the article could have benefited from discussing the potential impacts of the proposed changes on students, educators, and families, offering a more balanced view of the consequences of dismantling the Department of Education.

7
Clarity

The article is generally clear in its language and structure, making it accessible to a broad audience. It provides a straightforward account of the proposed changes to the Department of Education and the reactions from key stakeholders.

However, the article could improve in terms of logical flow and information presentation. For instance, the transition between discussing the proposed changes and the potential legal challenges is somewhat abrupt, which might confuse readers who are not familiar with the legal context.

The tone of the article is neutral, which helps maintain clarity and objectivity. However, further elaboration on the potential impacts of the changes could provide readers with a clearer understanding of the broader implications.

6
Source quality

The article's primary sources are statements from President Trump and the American Federation of Teachers, which are credible but limited in scope. While these sources provide insight into the administration's intentions and the opposition's stance, there is a lack of diversity in the sources used.

The inclusion of additional authoritative voices, such as educational policy experts or representatives from the SBA and HHS, would have enhanced the credibility and depth of the reporting. These sources could offer more nuanced perspectives on the feasibility and implications of the proposed changes.

Overall, while the sources used are credible, the article would benefit from a broader range of voices to provide a more comprehensive understanding of the issue.

5
Transparency

The article lacks transparency in terms of providing context and methodology for the proposed changes. While it mentions President Trump's statements and the legal challenges, it does not explain the rationale behind the reorganization or the process through which these changes will be implemented.

There is also a lack of disclosure regarding the potential conflicts of interest that might influence the reporting. For example, the article does not address whether the sources quoted have any vested interests in the outcome of the proposed changes.

Additionally, the article could have clarified the basis for some of its claims, such as the immediate transfer of responsibilities and the preservation of core functions. Providing more detailed information on these aspects would enhance the transparency and reliability of the reporting.

Sources

  1. https://www.axios.com/2025/03/21/trump-education-department-student-loans-nutrition
  2. https://abcnews.go.com/Politics/dismantling-education-department-student-loans/story?id=118730549
  3. https://www.nasfaa.org/news-item/35894/Trump_Signs_Executive_Order_Seeking_to_Dismantle_ED
  4. https://www.businessinsider.com/trump-student-loans-moving-to-sba-away-from-education-department-2025-3
  5. https://www.youtube.com/watch?v=T5xNdDLAP-0