Obama-Appointed Judge Allows Musk Access to Student Loan Data

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 groups who claim the decision could cause irreparable harm.

The ruling comes as Musk, who assumed office in January 2025, has vowed to significantly reduce government spending, pledging to slash the federal budget by up to $2 trillion annually. A significant portion of these cuts includes reducing billions in federal student loan funding, according to Newsweek.

The lawsuit was filed by the University of California Student Association (UCSA) in an attempt to block DOGE’s access to federal student loan data. The UCSA argued that allowing DOGE to collect this information could violate students’ privacy rights and lead to misuse of their personal financial details. However, U.S. District Judge Randolph D. Moss ruled against granting a temporary restraining order that would have prevented Acting Secretary of Education Denise Carter from providing DOGE access to the data.

Moss, an Obama appointee, stated that the plaintiffs had not demonstrated sufficient legal grounds to justify blocking DOGE’s access. “UCSA’s members are not suffering (and will not suffer) an irreparable harm,” he wrote in his decision.

Quoting from the 1984 decision in Wisconsin Gas Co. v. F.E.R.C., Moss emphasized that “injuries are not ‘irreparable’ if there is a ‘possibility’ that ‘adequate compensatory or other corrective relief will be available at a later date.’”

Backlash from Student Advocacy Groups

The ruling has sparked outrage among student advocacy organizations, who argue that DOGE’s access to student loan data is a significant overreach and could be used to justify drastic cuts to loan forgiveness programs or repayment assistance initiatives.

“This is a dangerous precedent,” said UCSA President Maya Rodriguez. “The government has no business collecting and analyzing this data in a way that could negatively impact millions of student borrowers. We fear this is just the first step toward gutting essential financial aid programs.”

Several advocacy groups, including the National Student Legal Defense Network and the American Civil Liberties Union (ACLU), have signaled that they are considering an appeal or further legal challenges to restrict DOGE’s ability to use the data for budgetary decision-making.

DOGE’s Plans for Government Spending Reform

The Department of Government Efficiency (DOGE), a new agency established under Musk’s administration, has been tasked with identifying wasteful government expenditures and proposing ways to streamline federal spending. In public statements, Musk has frequently criticized the federal student loan program, calling it a “massive burden on taxpayers” and proposing reforms that could include limiting federal aid to specific degree programs deemed “economically viable.”

DOGE spokesperson Robert Lang issued a statement defending the agency’s access to student loan data, arguing that it is necessary for responsible fiscal management.

“The American people deserve a government that is accountable and transparent about where their tax dollars are going,” Lang said. “Accessing student loan data will allow DOGE to assess the true cost and effectiveness of these programs. If we find inefficiencies, it is our duty to address them.”

Lang also assured borrowers that the data would not be used for punitive measures but rather to guide policy reforms. “We are not out to punish students. Our goal is to ensure that financial aid programs are sustainable, targeted, and beneficial to both students and taxpayers.”

Political Implications

The decision is likely to have significant political implications, as Musk’s administration faces growing scrutiny over its aggressive cost-cutting measures. Critics argue that reductions in student loan funding could disproportionately harm lower-income students who rely on federal assistance to access higher education.

Democratic lawmakers have voiced concerns over the ruling, with Senate Minority Leader Elizabeth Warren condemning the decision as “an attack on educational opportunity.”

“Instead of ensuring every American has access to affordable education, the Musk administration is prioritizing reckless budget cuts that could destroy the future of millions of students,” Warren said in a statement. “We will fight this tooth and nail.”

Republican lawmakers, however, have largely backed Musk’s efforts, arguing that government spending on higher education has spiraled out of control. Senator Josh Hawley praised DOGE’s initiative, stating, “It’s about time we take a hard look at how federal student loans are being handled. If reform is needed, then let’s have that discussion instead of pretending the system is working perfectly.”

What’s Next?

Although UCSA’s temporary restraining order was denied, the case is far from over. The student group has vowed to continue legal efforts to prevent DOGE from utilizing the student loan data in a way that could lead to cuts in funding or eligibility restrictions.

Legal experts suggest that while DOGE has won this initial battle, further litigation is likely. “There will almost certainly be additional lawsuits challenging the extent to which DOGE can act on this information,” said constitutional law expert Dr. Rachel Levin of Georgetown University. “The key question moving forward is whether their use of this data crosses any legal or constitutional boundaries.”

For now, the ruling stands, marking a major victory for Musk’s administration and its cost-cutting agenda. As the debate over federal student loan funding intensifies, students, lawmakers, and advocacy groups will continue to monitor how DOGE wields its newfound access to loan data—and what it means for the future of higher education in the United States.