On Feb. 18, 2025, federal Judge Randolph D. Moss granted the Department of Government Efficiency (DOGE) — an entity led by Elon Musk and his associates — access to student loan and financial aid data. This is a dangerous and irresponsible move that jeopardizes the privacy and financial security of millions of borrowers. Despite claims that DOGE’s involvement will streamline operations and cut government spending, the risks far outweigh any speculative benefits.
The University of California Student Association (UCSA) took the necessary and justified step in filing a lawsuit to prevent DOGE’s access to student data. Although Judge Moss temporarily blocked DOGE earlier last week, UCSA’s legal efforts were ultimately not upheld at the federal level. DOGE’s unchecked power, lack of oversight and potential misuse of sensitive student data present serious concerns about accountability that cannot be ignored.
DOGE’s access to student loan and financial aid data creates major privacy risks, particularly given their history of data breaches and governmental misuse of sensitive information. Past incidents, such as unauthorized data collection by intelligence agencies and financial institutions leaking private information, demonstrate the severe consequences of failing to protect sensitive records.
The decision to allow Musk’s associates to handle this data is not only reckless but also sets a dangerous precedent for future government action. There is no compelling evidence to suggest that DOGE, a new executive office created by President Trump through executive order, has the necessary safeguards in place to protect borrower data from unauthorized access, misuse or even sale to third parties. To make matters worse, DOGE is not an officially recognized government agency and should not be able to exercise such authority.
Without stringent oversight, there is no assurance that DOGE will not exploit student data for profit-driven motives, particularly given Musk’s extensive business interests in finance and technology.
Beyond the clear privacy violations, allowing DOGE access to student financial data could have a severe impact on borrowers in the long term. Historically, private entities with government influence have manipulated financial policies for their own benefit, often at the expense of the public. If DOGE gains the ability to influence student loan policies, there is a very legitimate risk that decisions will be made to serve corporate interests, rather than the financial well-being of students and borrowers.
The documents that DOGE has now gained access to contain sensitive personal and financial information, including date of birth, names, student loan account information, Social Security numbers (SSN), contact information, driver’s license number and financial background. This access opens the door for potential changes in financial aid distribution, loan repayment structures and interest rate policies — all of which could disproportionately harm low-income students, Deferred Action for Childhood Arrivals (DACA) students or those with family members who aren’t registered citizens.
Given the increasing costs of higher education, any policy shifts that prioritize cost-cutting would be devastating. For instance, over-borrower protections, which reduce expenses by eliminating student resources, are one of those policies at risk. Prioritizing cost-cutting over these protections will hurt lower-income students, as higher education will be harder to access and loan repayment will become more difficult to pay.
The decision to allow DOGE to operate within the Department of Education, despite its non-federal status, is yet another example of government resources being handed over to private interests with little regard for the consequences. Legal experts have already raised concerns about the implications of this decision, yet the federal court failed to intervene.
The UCSA lawsuit was a crucial step in challenging this blatant overreach, and it should not have been dismissed just because “plaintiffs had not presented sufficient evidence to demonstrate imminent risk of an irreparable injury that would warrant the issuance of a temporary restraining order.”
The court’s reasoning fails to acknowledge that granting DOGE access to sensitive student financial data poses an immediate and lasting threat to borrowers’ educational and financial stability. If DOGE manipulates loan policies, alters repayment structures or allows data breaches, students could face sudden financial burdens, increased debt and barriers to higher education.
The lawsuit also rightfully called attention to the lack of oversight and the potential for misuse of student loan data. By taking legal action, UCSA upheld the rights of students across the country, sending a clear message that access to such critical information should not be granted without safeguards and accountability.
Despite the legal setback, the lawsuit succeeded temporarily for a total of seven days from Feb 11. to Feb. 17. The lawsuit halted DOGE’s access and sparked national discourse on the dangers of allowing private entities to interfere in public financial aid systems. The fact that DOGE’s access was initially suspended demonstrates that these concerns are valid and warranted. The failure to uphold the injunction does not erase the necessity of the lawsuit — if anything, it demonstrates the urgent need for further legal challenges and legislative action to restrict DOGE’s authority.
If DOGE continues to operate unchecked, it will establish a dangerous precedent for future governmental organizations to not be held accountable. Today, it is student loan data. Tomorrow, it could be broader financial records, personal health information and other sensitive data being handed over to private entities under the guise of efficiency. This is not about streamlining bureaucracy. It is about consolidating control over critical information with minimal oversight or accountability.
As a nation there are already little to no safeguards against President Donald J. Trump, which is why this decision cannot go unchallenged. UCSA took proper action by filing their lawsuit and Congress and the Department of Education should impose stricter regulations on data access and ensure that any entity handling such information is subject to rigorous oversight. Students and borrowers should also remain engaged by demanding transparency and supporting advocacy efforts that push back against this reckless decision.
Ultimately, granting DOGE access to student loan data is a betrayal of public trust and a clear example of government overreach. If action is not taken now, this decision will set a precedent that could have disastrous consequences for years to come. The time to stand up is now.
