Court Blocks Trump’s Student Loan Power Move
#BreakingNews, #TrendingNews, #WorldNews, #DailyUpdates, #NewsToday, #LiveNews, #GlobalNews, #TopStories, #CurrentEvents, #HotNews
#BreakingNews, #TrendingNews, #WorldNews, #DailyUpdates, #NewsToday, #LiveNews, #GlobalNews, #TopStories, #CurrentEvents, #HotNews
Category
🗞
NewsTranscript
00:00Date, May 30, 2025. Byline Staff Writer, Washington, D.C.
00:06A federal judge has blocked an effort initiated during former President Donald Trump's administration
00:11to transfer oversight of the federal student loan program from the Department of Education to the Department of the Treasury.
00:18The court ruled that the move exceeded executive authority and undermined congressional intent regarding the management of federal education programs.
00:26The proposed shift, originally announced in late 2019, was part of a broader Trump-era initiative aimed at reforming the federal student loan system.
00:37Supporters of the proposal claimed that placing the program under the Treasury would improve efficiency and financial accountability.
00:45Critics, however, argued that the plan would prioritize debt collection over student support and could limit borrowers' access to relief programs.
00:53In the ruling released Thursday, U.S. District Judge Karen Simmons stated that
00:57The executive branch does not have unilateral authority to reorganize federally mandated educational oversight without explicit congressional approval.
01:07The judge emphasized that Congress had clearly designated the Department of Education as the appropriate agency to administer and manage student loans under the Higher Education Act of 1965.
01:18Advocates for student borrowers hailed the decision as a victory.
01:23This ruling reaffirms the importance of keeping student loan services under the guidance of an agency focused on education, not finance, said Melissa Torres,
01:33legal director at the National Student Borrower Defense Coalition.
01:37Although the Trump administration left office in January 2021,
01:41legal challenges to several of its regulatory changes have continued to work their way through the courts.
01:47President Joe Biden's administration formally reversed many of the Trump-era education policies.
01:54But legal clarity on structural shifts like the proposed transfer of loan oversight remained unresolved until now.
02:01It is unclear whether any future administration will revisit the idea.
02:05For now, the Department of Education retains full control of the federal student loan system,
02:10which serves over 40 million borrowers nationwide.
02:12Thank you for joining us.
02:13It's crucial to have the power of the impression.
02:15It is a key to have location.
02:17點ŋ-
02:31Thank you for joining us.
02:33You can see the industry filling in the middleware.
02:36The damage is related to the testimony that we实 are doing to improve our policy.