A federal court declined to issue an order preventing the Department of Government Efficiency, or DOGE, from accessing sensitive student loan borrower data housed at the Department of Education, according to a ruling issued on Monday. But the legal battle isn’t over.
Student loan borrower advocacy groups and Democratic lawmakers in Congress have expressed alarm that DOGE, spearheaded by Elon Musk, had gained access to data systems containing sensitive information about millions of Americans who had applied for federal student aid or were repaying their federal student loans. Advocates have been concerned that accessing this data could put people at risk of privacy violations or identity theft.
A student association at the University of California filed a lawsuit earlier this month to halt DOGE’s access to Department of Education data systems. But after allowing for a brief suspension of access while considering the legal arguments, a federal district court judge in the District of Columbia declined to impose a temporary restraining order, allowing DOGE to continue accessing the data. Here’s what student loan borrowers should know.
Lawsuit Accuses Department Of Education Of Putting Millions Of Student Loan Borrowers At Risk
Earlier this month, the University of California Student Association, represented by Public Citizen and the National Student Legal Defense Network, filed a lawsuit against the Department of Education “to halt Defendants’ unlawful ongoing, systematic, and continuous disclosure of sensitive personal and financial information contained in ED’s records to the so-called ‘Department of Government Efficiency’ (DOGE) or to any other person,” said the complaint.
The Department “collects and maintains sensitive personal and financial information, including ‘[their] name, Social Security number (SSN), date of birth, student loan account information, contact information, driver’s license number, and financial information,’” said the Complaint, as well as “personal and financial information for the parents of dependent student-loan applicants and for the spouses of married applicants, as well as student demographic information, such as citizenship, dependency status, veteran status, marital status, gender, and income and asset information.”
Such information falling into the wrong hands could have devastating impacts for millions of Americans, warned the Plaintiffs. “Defendants’ action granting DOGE-affiliated individuals continuous and ongoing access to that information for an unspecified period of time means that millions of Americans from all walks of life have no assurance that their sensitive information—and that of their parents and/or spouses—will receive the protection that federal law affords,” said the suit.
“If you’re one of the 40 million people with student loans, Elon Musk’s team may have gotten access to your Social Security number, income data, and personal information,” warned Senator Elizabeth Warren (D-MA) in a statement on X earlier this month.
As an initial step, the parties and the court agreed to temporarily suspend DOGE’s access to Department of Education data systems until the court could fully review their legal arguments.
Judge Declines To Stop DOGE From Accessing Department Of Education Student Loan Data
But on Monday, the court issued an order allowing DOGE to continue accessing the data, concluding that the Plaintiffs had not presented sufficient evidence to demonstrate imminent risk of an irreparable injury that would warrant the issuance of a temporary restraining order.
“Courts have declined to find irreparable injury where the challenged disclosure is not ‘public,’ but involves individuals obligated to keep it confidential,” said Judge Randolph D. Moss in his ruling. Judge Moss pointed to affidavits submitted by DOGE staffers that said they “understand that—like all Department of Education employees—they must comply with all applicable laws and regulations should they wish to share any information garnered during their work,” and that, to their knowledge, “none of the information at issue has been shared with any other ‘DOGE-affiliated individuals.’”
The court further noted that affidavits from DOGE staffers indicated that “none of the six employees at issue will access ‘any tax-related information’ without first obtaining the ‘appropriate authorization,’ and even then, those employees will access the information only ‘for purposes consistent with applicable law, such as conducting analyses to estimate costs related to student loan repayment plans, awards, or debt discharges.’”
The judge credited the affidavits, and noted that “ED and DOGE staffers are obligated to use UCSA members’ information for lawful purposes within the mission of the Department of Education and to keep it confidential, in accordance with the Privacy Act, tax laws, and other federal laws.” The concerns about identity theft and unlawful dissemination of protected information were “far from likely,” he wrote.
What Student Loan Borrowers Should Know About Department Of Education Data Exposure
The court’s ruling does not mean that the legal battle is over; it just means that the court has declined to issue a temporary restraining order. The lawsuit over DOGE’s access to student loan data at the Department of Education continues.
“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,” noted the court.
In the meantime, a coalition of labor unions have filed a separate lawsuit to halt DOGE’s access to sensitive data at the Department of Education, the Office of Personnel Management, and the Department of Treasury. The American Federation of Teachers, the National Active and Retired Federal Employees Association (NARFE), the International Association of Machinists and Aerospace Workers (IAM) and the National Federation of Federal Employees (NFFE) filed the suit last week.
“Steamrolling into sensitive government record systems has led to a massive data breach that threatens to upend how these critical systems are maintained and seriously compromises the safety and security of personal identifying information for Americans all across the country,” reads the suit, which was filed in the U.S. District Court for the District of Maryland. “It also violates federal law.”
“This is a breach of our fundamental freedoms,” said AFT President Randi Weingarten in a statement last week. “Right now, inside the Department of Education, the world’s richest man is rifling through 45 million people’s private student loan accounts and feeding the data into artificial intelligence.”
Borrowers should be aware that online rumors that DOGE’s data access at the Department of Education provides grounds for student loan forgiveness under FERPA are incorrect. FERPA has no private right of action, meaning borrowers do not have the ability to file a lawsuit over a violation. In addition, student loan forgiveness is not an available remedy for a FERPA violation. Instead, borrowers who want to protect themselves can take steps to retain key student loan records and shore up their account security.
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