The Department of Government Efficiency (DOGE), a task force created by President Donald Trump’s administration and spearheaded by Elon Musk, has reportedly gained access to financial aid data from the Department of Education, sparking concerns over privacy and security for millions of student loan borrowers.
A federal court recently declined to block DOGE’s access, stating that the legal battle is ongoing but that immediate harm has not been demonstrated.
Why It Matters
According to data from the Education Data Initiative, 42.7 million student borrowers have federal student loan debt. Since Americans utilize federal student loans, their sensitive data—including Social Security numbers, loan balances and payment histories—are stored within the Department of Education’s databases. With DOGE gaining access to this information, privacy advocates, lawmakers and student groups have raised concerns about potential misuse or unauthorized disclosure of personal financial data.
Democratic lawmakers have called for transparency regarding DOGE’s access to Americans’ information, and a coalition of senators recently sent a letter to the acting IRS commissioner requesting clarification on what data DOGE is trying to inspect.
Meanwhile, a lawsuit filed by the University of California Student Association (UCSA) argues that DOGE’s access to student information violates federal privacy laws.
What To Know
DOGE’s access to student loan data has been a point of contention since reports first surfaced about its involvement in auditing the Department of Education.
While government officials insist that DOGE employees must comply with federal privacy laws, critics worry that the group’s mission to cut government spending could lead to financial aid program reductions or even the potential misuse of borrower data.
Borrowers cannot prevent DOGE from accessing their student loan information, though ongoing lawsuits have temporarily blocked this access, student loan expert Mark Kantrowitz told Newsweek.
Even if loans are fully repaid, the U.S. Department of Education retains historical data that DOGE could still review, primarily in aggregate rather than individually.
“If borrowers are concerned about their information being used for nefarious purposes, they can freeze their credit reports with Experian, Equifax and TransUnion. They can alternatively place a fraud report,” Kantrowitz told Newsweek. “These will prevent anybody from applying for new credit in their name. It will not, however, prevent the U.S. Department of Education from reporting their student loans to the credit bureaus.”
What People Are Saying
An Education Department spokesperson previously told Newsweek: “[Federal Student Aid] has not engaged in any activities that would expose your data through unauthorized or unlawful means.”
Mark Kantrowitz, a student loan and higher education expert, told Newsweek: “DOGE likely has access to full information. Though, given that they are conducting a superficial review of data, they are unlikely to look at individual borrower’s information, as they don’t have the time to do that, but rather review data in aggregate.”
A coalition of senators said in a letter to acting IRS commissioner Douglas O’Donnell: “We demand that the IRS immediately clarify the extent to which DOGE team members may have inspected or be seeking to inspect the private tax return information of millions of Americans and whether taxpayer privacy laws are being enforced to prevent unauthorized disclosure and intrusions.”
Senator Elizabeth Warren, a Massachusetts Democrat, said in a statement on X (formerly Twitter): “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.”
What’s Next
Lawmakers continue to push for greater oversight and accountability regarding DOGE’s involvement in federal agencies. Meanwhile, borrowers can stay vigilant by monitoring their credit.
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