(NewsNation) — The Trump administration has announced plans to significantly reduce headcount at the Small Business Administration, the government entity that the president says may be better suited to handling the nation’s $1.7 trillion student loan portfolio.
SBA Administrator Kelly Loeffler on Friday said her office, which helps small businesses with expertise and financial assistance, would reduce staff by 43%. This would decrease the SBA’s number of employees to pre-pandemic levels of 3,800 from 6,500 currently.
“By eliminating non-mission-critical positions and consolidating functions, we will revert to the staffing levels of the last Trump Administration,” Loeffler said in a statement.
What happens if the Department of Education is abolished?
The move comes as Trump is seeking to reduce the scope of government. His targets include the Department of Education. Trump wants to completely dismantle it, although many agree this would need congressional approval.
The president has suggested moving some Education Department functions to other federal offices. He said the SBA, for example, could take over the administration of student loans, which total about $1.7 trillion across more than 40 million borrowers.
Critics say that is a bad idea.
“This can only result in borrowers experiencing erratic and inconsistent management of their federal student loans,” Jessica Thompson, senior vice president of the Institute of College Access and Success, told The Associated Press. “Errors will prove costly to borrowers and ultimately, to taxpayers.”
The Associated Press contributed to this report.
