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10 Feb, 2025
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Elon Musk And DOGE’s Access To Student Loan Data Raises Concern—Here's What To Know
@Source: forbes.com
Share to Facebook Share to Twitter Share to Linkedin Democrats and student loan borrowers have raised concerns about reports suggesting billionaire Elon Musk and his Department of Government Efficiency (DOGE) associates may have access to sensitive student loan information at the Department of Education, which some students have alleged in court violates federal law—though borrowers are unlikely to receive any relief even if Musk’s access isn’t lawful. Elon Musk arrives to President Donald Trump's inauguration at the U.S. Capitol on January 20 in ... [+] Washington, DC. Getty Images Recent news reports suggest Musk and his team at DOGE have been scrutinizing the Education Department’s operations—as Trump reportedly eyes shutting down the agency—with The Washington Post reporting DOGE staffers have access to agency data that includes a dataset containing “personal information for millions of students enrolled in the federal student aid program.” Students at University of California schools filed a federal lawsuit Friday against the Education Department arguing DOGE’s access to that data violates federal laws that maintain strict privacy regulations around sensitive financial aid information. Under federal law, only certain employees who work for the agency housing the data can access borrowers’ information—if they “have a need for the record in the performance of their duties”—and any other government employees can only get access for certain “routine uses” that have to be disclosed under federal law. The student plaintiffs argue DOGE is violating these rules by accessing their data, allegedly without the proper authorization steps being taken, and have violated the borrowers’ rights by “depriving them of the privacy protections guaranteed to them by federal law” and not giving them the opportunity to decide whether DOGE should have access to their data. Democratic lawmakers have also expressed concern, with a coalition of 18 senators sending a letter to the Education Department last week demanding it provide information about what DOGE has access to. TikTok users have made videos questioning Musk gaining access to their data and suggesting it violates the Family Educational Rights and Privacy Act (FERPA), though that law does not allow for borrowers to receive any financial recourse if their rights are violated, as some users have suggested. What To Watch For A scheduling conference in the University of California lawsuit is set for Monday afternoon, so there could be more information at that point about what the timeline will be in the case and when there could be a ruling on DOGE having access to the loan data. The student plaintiffs in the case are ultimately asking for a court order blocking DOGE officials and similar employees from viewing any sensitive financial information and revoking any information they already have, and requiring any access DOGE or other Trump staffers have to student loan data to be compliant with federal law. What Is Ferpa? FERPA was enacted in 1974 and broadly prohibits educational institutions from disclosing students’ personal school records without their or their parents’ consent, and mandates that schools allow students and their parents access to their own records. The law makes schools’ federal funding contingent on following the privacy rules. Can Student Loans Be Forgiven If Doge Violated Ferpa? While some TikTok users have claimed they can have their loans forgiven because Musk and DOGE violated FERPA, there's no scenario outlined in the federal law to give student loan borrowers relief even if there was a violation. The Supreme Court ruled in 2002 students do not have a private right of action to bring lawsuits under FERPA, so even if borrowers’ information was unlawfully disclosed, they don’t have any grounds to sue. While it is possible to file a complaint with the government alleging a FERPA violation, those claims will be investigated and enforced by the Education Department—which is unlikely to find any fault or grant relief in this case, given that the department is managed by Trump appointees. Even in cases where there is a violation of FERPA, the recourse outlined in the federal law is for the federal government to withhold funding from any education institutions that unlawfully disclose student information—which, according to the Student Press Law Center, has never actually happened—not to provide any financial recourse to the student whose data was disclosed themselves. The main recourse that student borrowers with concerns about DOGE have is to file a complaint alleging other violations of federal law besides FERPA and asking for the court to revoke DOGE’s access to the data, as the University of California plaintiffs are doing. What Happens To Student Loans If The Department Of Education Is Abolished? While Trump is reportedly planning to try and dismantle the Department of Education—a move that’s all but certain to be met with court challenges—it’s still unclear what provisions will be made for federal student loans. The right-wing policy proposal Project 2025, which also proposed getting rid of the Education Department, suggested the federal student loan portfolio should be spun off into a new “government corporation” led by presidential appointees and funded by Congress, though it’s still unknown whether Trump would try to take a similar approach. Key Background Musk and DOGE’s reported access to information at the Education Department comes as the Musk-helmed group—whose stated goal is to get rid of government waste—has controversially inserted itself into a range of government operations. DOGE staffers have gained access to sensitive Treasury Department data and other government information and the group has been linked to the dismantling of the U.S. Agency for International Development, among other moves. That resulted in a court ruling barring Musk and DOGE from accessing the Treasury’s data—which the Trump administration is challenging in court—and numerous other lawsuits targeting DOGE and its operations. Trump has been widely expected to target the Education Department now that he’s in office, as he’s repeatedly attacked the agency and called before his inauguration for it to be abolished. Further Reading ForbesTrump Vs. Education Department: Musk’s DOGE Reportedly Using AI To Look For Cuts—Here’s What We KnowBy Molly Bohannon ForbesHere’s What To Know About Elon Musk’s DOGE: Judge Blocks DOGE’s Treasury AccessBy Molly Bohannon ForbesHere Are All The Major Lawsuits Against Trump And Musk—As Third Judge Blocks Birthright Citizenship OrderBy Alison Durkee Follow me on Twitter. Send me a secure tip. Alison Durkee Editorial Standards Forbes Accolades
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