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Save Federal Student Loan Programs from Cuts and Chaos

Trump has signed an executive order which illegally moves federal student loan programs from the Department of Education to the Small Business Administration (SBA). The SBA has already cut over 40% of its staff and it is unclear how it will manage the programs which each year lend over 100 billion and collect around 1.6 trillion in loan payments. The move will endanger borrowers with logistical confusion and roadblocks for students and universities in applying for, processing, and repaying their loans.

Student loan programs are also at risk of losing funding via budget reconciliation which mandates $330 billion in cuts to Education and Workforce spending over the next decade.

These cuts and program changes will bring negative effects for future students and current borrowers including raising monthly payments by ending a Biden Administration program tying monthly payments to borrower’s income level, limiting funding to the decades-old Pell grant program which provides financial aid grants for low-income students, rolling back borrower protections that make it harder to get relief when mislead by a school, and canceling loan forgiveness for borrowers who work in public service for 10 years.

Demand your representatives protect student loan funding and oppose the illegal move of the student loan program from the Department of Education to the Small Business Administration.

Contacts for this topic:

Hi, my name is [NAME] and I’m a constituent from [CITY, ZIP].

I’m calling to urge [REP/SEN NAME] to protect funding for the federal student loan program and oppose the illegal move of the program from the Department of Education to the Small Business Administration. Access to federal student loan and aid programs are crucial to the ability of American students to go to college and embark on a path toward economic stability.

Thank you for your time and consideration.

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