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Protect Student Borrowers: Keep Federal Loans Out of the SBA

To: Rep. Rouzer, Sen. Budd, Sen. Tillis

From: A constituent in Wilmington, NC

March 27

I am writing to strongly oppose any efforts to move federal student loan programs under the Small Business Administration (SBA). This proposed change would create unnecessary complications, reduce borrower protections, and misalign the purpose of student loans with the mission of the SBA. Student loans exist to support individuals pursuing higher education, whereas the SBA is designed to assist entrepreneurs in starting and growing businesses. Transferring student loan management to an agency unprepared for this responsibility would likely result in reduced access to income-driven repayment plans, loan forgiveness programs, and consumer protections that borrowers rely on. It could also introduce inefficiencies that make repayment more difficult and confusing. The Department of Education has an established framework for managing federal student loans. Instead of shifting responsibility to an ill-equipped agency, efforts should focus on improving existing programs to make repayment more affordable and transparent for borrowers. I urge you to reject any proposal to move student loans under the SBA and to advocate for policies that genuinely support student borrowers. Thank you for your time and service. I look forward to your response.

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