Elon Musk has been leading President Trump's efforts to slash federal spending under the so-called Department of Government Efficiency, or DOGE
Concerns are rising over reports that Elon Musk and his DOGE team may have access to sensitive student loan data. AFP

Concerns are mounting after reports surfaced suggesting that billionaire Elon Musk and his Department of Government Efficiency (DOGE) team might have access to sensitive student loan data at the U.S. Department of Education.

Democrats and student loan borrowers worry this access may violate federal privacy laws. However, even if the access was unlawful, borrowers were unlikely to see any relief, Forbes reported.

Reports claimed that Musk and his DOGE team have been examining the Education Department's operations, including a database containing personal information about millions of students receiving federal financial aid.

Last week, students from the University of California filed a federal lawsuit against the Education Department, arguing that DOGE's access to this data violated strict privacy laws designed to protect student loan information.

The federal law allows only specific Education Department employees to access such data, and only for official purposes. Students argue that DOGE, without the proper authorization, is violating their rights by accessing their financial aid records. They are asking the court to block DOGE from viewing this information and to ensure any future access complies with federal law.

Echoing similar concerns, 18 Democratic lawmakers have written to the Education Department, seeking clarification on the information DOGE can access.

In addition, TikTok users have been posting videos questioning Musk's access to their data, suggesting it violates the Family Educational Rights and Privacy Act (FERPA). However, the law does not provide borrowers with financial compensation if their rights are violated, as some have claimed.

FERPA and student loan relief limits

The Family Educational Rights and Privacy Act (FERPA), passed in 1974, is a key law in protecting student privacy. It prohibits the disclosure of student records without consent, and violations can result in the loss of federal funding for educational institutions. However, FERPA doesn't offer students the right to sue for financial compensation if their data is disclosed without permission.

Some TikTok users have suggested that they could get their loans forgiven because Musk and DOGE may have violated FERPA, but that's not possible under federal law.

The Supreme Court ruled in 2002 that students can't sue under FERPA if their data was misused. While students can file complaints about FERPA violations, these are usually investigated by the Education Department, which is unlikely to take action under the current leadership.

Even if FERPA is violated, the law only allows the government to withhold funding from schools, not provide relief to affected students.

The best course of action for students concerned about DOGE is to file complaints about other legal violations and request the court to block DOGE from accessing their data, as University of California students have done.

What happens if the education department is abolished?

There are reports that President Donald Trump plans to eliminate the Department of Education, a move that is expected to face legal challenges. It's still unclear what would happen to federal student loans if this occurs. One proposal, Project 2025, suggests creating a new government corporation to handle student loans, but the details of such a plan remain uncertain.