Many people have questions about the future of student loans after President Trump signed an executive order to dismantle the U.S. Department of Education.

He said he wants the Small Business Administration to manage federal student loans instead.

These changes have not happened yet, as Congress must approve them. 

Jack Wallace is a former financial advisor to the Department of Education.

He said, for the moment, everything is the same as it has been. The Department of Education still manages federal student loans. 

He doesn’t expect big changes soon.

Federal student loans still must be paid if the Small Business Administration takes them over.

“Just because they move the loans from the Department of Education to another agency, whether it’s SBA or somebody else, it is a loan,” he said. “You signed a promissory note. It’s not a grant or a scholarship, so it must be repaid.”

His advice for high school students is to pick a college they can afford.

For current college students, he said not to wordy about big changes ahead of next semester.

He recommends that soon-to-be graduates get ready to pay.   

“If you have a federal student loan, you’ll have up to six months to begin to repay that program. What you want to do is look at these programs now and see what’s best for you,” he said.