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"Ranking Member Velázquez Denounces Trump’s SBA Student Loan Takeover"

Summary

A statement dated March 21, 2025 released by Rep. Nydia M. Velázquez (D-NY) after President Trump announced that the Small Business Administration will take over management of the federal government's student loan portfolio. Velázquez describes the portfolio as approximately $1.6 trillion and calls the decision irresponsible for an agency whose mission is to aid small businesses. She says SBA had just released a reorganization plan cutting nearly half its workforce that made no mention of student loans, and that the agency lacks the personnel and resources for the task. The statement asks SBA Administrator Kelly Loeffler to explain how the portfolio fits the agency's founding mission.

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Ranking Member Velázquez Denounces Trump’s SBA Student Loan Takeover

March 21, 2025

WASHINGTON– Today, Rep. Nydia M. Velázquez (D-NY) released the following statement after President Trump announced that the Small Business Administration (SBA) will take over management of the federal government’s student loan portfolio, following the dismantling of the Department of Education:

“Trump’s decision to shift responsibility over the federal government’s approximately $1.6 trillion student loan portfolio is baffling and irresponsible. The mission of the SBA is to aid, counsel, assist and protect small businesses, this decision will do nothing to advance these goals. In fact, it will actively hurt both American entrepreneurs and student loan borrowers.

“The decision is made even more absurd by the fact that SBA just released a reorganization plan that cuts nearly half its workforce and makes no mention of taking on responsibility for student loans. SBA does not have the personnel or the resources to take on this massive responsibility. If this plan goes forward, small businesses will pay the price, losing out on access to critical support and resources.

“Ironically, SBA Administrator Kelly Loeffler released a video today claimed she is committed to restoring focus on the agency’s founding mission. She should explain how taking on a massive, unrelated student loan portfolio will help accomplish that. Small businesses and student borrowers deserve answers.”

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