Obama-Appointed Judge Grants Musk Access to Student Loan Info

A federal judge has ruled in favor of Elon Musk’s Department of Government Efficiency (DOGE), granting it access to student loan data despite strong opposition from student organizations that warn of potential irreversible consequences.

The decision aligns with Musk’s commitment to reducing federal expenditures by as much as $2 trillion annually, which includes substantial cuts to federal student loan funding, as reported by Newsweek.

On February 17, U.S. District Judge Randolph D. Moss in Washington, D.C., denied a request for a temporary restraining order against Acting Secretary of Education Denise Carter. This ruling permits her to share student loan data with DOGE. The University of California Student Association (UCSA) had requested the order, arguing in court filings that DOGE’s access to such data would violate privacy protections and could be exploited.

Judge Moss, appointed by former President Barack Obama, determined that: “UCSA’s members are not suffering (and will not suffer) an irreparable harm.”

He referenced the 1984 case Wisconsin Gas Co. v. F.E.R.C., stating: “In general, injuries are not ‘irreparable’ if there is a ‘possibility’ that ‘adequate compensatory or other corrective relief will be available at a later date.’”

Additionally, he ruled that both the Privacy Act and the Internal Revenue Code “provide a private right of action and money damages” should DOGE engage in any “unauthorized disclosures” of student information.

“To the extent UCSA members have been injured by violations of these statutes, and they meet the other requirements for obtaining relief, there is at least a ‘possibility’ of compensatory relief at a later date,” Moss stated in his ruling, per Newsweek.

While acknowledging that the disclosure of private data is typically irreversible, he concluded, “but that is not sufficient to show irreparable harm.”

He elaborated, “What UCSA overlooks is that the context of the dissemination matters. Courts find dissemination of information to be an irreparable injury where, for example, highly sensitive information will be made public, or end up in the hands of someone with no obligation to keep it confidential.”

This ruling represents a significant defeat for Democrats and their progressive allies seeking to obstruct DOGE’s federal budget reductions.

Although UCSA retains the option to appeal to a federal circuit court, it currently lacks any legal mechanism to prevent DOGE from obtaining student loan data, according to Newsweek.

In his ruling, Moss highlighted that six federal employees are now dedicated full-time to coordinating efforts between DOGE and the Department of Education. This collaboration will persist unless a higher federal court intervenes.

Last week, Musk criticized another federal judge who ruled against DOGE’s attempt to access specific U.S. Treasury Department data, calling for his impeachment.

Posting on his social media platform, X, Musk stated that his team is focused on identifying inefficiencies and misuse within government operations under the leadership of President Donald Trump.

When an X user pointed out that Congress has the authority to impeach federal judges, Musk replied, “It’s time.”

U.S. District Judge Paul A. Engelmayer had issued a preliminary injunction after 19 Democratic attorneys general filed a lawsuit, arguing that the Trump administration had improperly granted Musk’s team access to the Treasury Department’s central payment system, which they claim violates federal law.

The system in question manages the distribution of tax refunds, Social Security benefits, veterans’ benefits, and other payments, handling trillions of dollars annually while safeguarding extensive personal and financial information. A hearing on the matter was held on February 14.

Musk later proposed a controversial idea: “I’d like to propose that the worst 1% of appointed judges, as determined by elected bodies, be fired every year. This will weed out the most corrupt and least competent.”

In another post, he added, “A corrupt judge protecting corruption. He needs to be impeached now!”

Subsequently, Musk shared concerning data that appears to suggest billions of taxpayer dollars are being allocated to millions of individuals aged between 100 and 160, with some payments allegedly directed to recipients over 200 years old.