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Court Blocks Trump From Transferring Student Loan Portfolio — What It Means For Borrowers

  • A federal judge, Myong J. Joun, blocked the Trump administration's plan to dismantle the Department of Education, issuing a preliminary injunction against firing nearly 1,400 employees.
  • Judge Joun stated that the administration's actions aimed to effectively dismantle the Department without an authorizing statute, which contravened congressional intent.
  • The injunction requires the Department to reinstate employees and prevents the transfer of student loan management to the Small Business Administration, marking a significant judicial challenge to executive powers.
  • The court's decision means the administration's efforts to cut the department's workforce and reshape educational oversight are halted, pending further legal proceedings.
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  • 57% of the sources lean Left
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New York Magazine broke the news in New York, United States on Thursday, May 22, 2025.
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