Student loans are no longer managed by the Department of Education, Trump’s orders
President Trump ordered student loans to get out of the education department. He asked Small Business Administration to manage it.
The American government agency which offers loans and helps millions of small businesses across America, the country’s machinery room, said on Friday that it would eliminate more than 40% of its staff.
The Small Business Administration has announced that it would eliminate approximately 2,700 jobs, while the Trump administration continues to serve federal workforce and push to reduce the size and cost of the United States government.
The SBA, which provides resources to small businesses across America, said in a press release that the reduction in its workforce by 6,500 people per 43% was one of the reforms aimed at “ending the extended social policy of the previous administration, eliminating non-essential roles and returning to pre-countryic endowment levels”.
The cuts were announced the same day president Donald Trump gave the agency more responsibilities, telling journalists from the Oval Office that the SBA would take care of the federal portfolio of student loans at the Ministry of Education, which the president wishes to close.
Trump had given all federal agencies until March 13 to establish plans for a second wave of mass layoffs while he seeks to redo the federal government, that he and his cost reduction of Elon Musk cost called inflated and ineffective.
White House officials are now examining the workforce reduction plans, a decision that should lead to the mass dismissal of thousands of officials in the coming weeks, two sources who know the case said on Thursday.
In addition to reducing agencies, Trump and the government’s ministry of efficiency led by musks also tried to obtain access to their sensitive personal information collections, but were thwarted at various times by the courts.
Late Thursday, Trump signed a managerial decree of agency chiefs to allow federal officials appointed by the president or the agency management to have unhindered access to data, recordings and unusual software and computer systems.
The directive aims to allow the administration to continue “the priorities related to the identification and elimination of waste, fraud and abuse,” said the decree.
Social Security data concerns
On Thursday, a federal judge said that Social Security Administration had probably violated the laws on confidentiality by giving musk aid “frantic access” to the data of millions of Americans, and ordered a registration sharing.
In response, the actor chief of the SSA Leland Dudek, who cooperated with DOGE, said that the order blocking the “Affiliates de Doge” of the agency’s systems was so wide that it could apply to all the staff. Dudek said that he “would end the access by all SSa employees to our computer systems,” according to Bloomberg. Dudek said he would ask the judge to clarify his order.
Friday, afternoon employees still had access to SSA databases, according to two agency sources familiar with systems. SSA administers advantages for tens of millions of older Americans and people with disabilities.
One of the sources told Reuters that even a temporary blockage of access to SSA databases could interrupt social security services to millions of Americans who are on her.
Asked comments on Friday, the SSA said in an email: “We received the court order and we will comply.”
Report by Nathan Layne in New York; Edition by Bill Berkrot and Aurora Ellis