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Lawmakers question Musk’s ‘infiltration’ into Education Dept. and student loan borrower data

Tom Robbins by Tom Robbins
February 7, 2025
in Investing
Lawmakers question Musk’s ‘infiltration’ into Education Dept. and student loan borrower data
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U.S. Sen. Elizabeth Warren (D-MA) speaks to a crowd gathered in front of the U.S. Treasury Department in protest of Elon Musk and the Department of Government Efficiency on Feb. 4, 2025 in Washington, DC.

Anna Rose Layden | Getty Images

U.S. senators expressed concern on Friday that Elon Musk’s cost-cutting effort, the Department of Government Efficiency, had “infiltrated” the Department of Education and possibly gained access to federal student loan data on tens of millions of borrowers.

In a letter signed by 16 Democratic senators, including Elizabeth Warren of Massachusetts and Chuck Schumer of New York, the lawmakers said that the Education Department’s student loan database “contains millions of borrowers’ highly sensitive information, including Social Security numbers, marital status, and income data.”

The senators cited reporting by The Washington Post, which noted Education Department staff were “deeply alarmed” by DOGE staffers’ access to federal student loan borrowers’ personal information.

“The millions of families who rely on ED to help them achieve the American Dream deserve answers about reports that an unelected billionaire and his team now have access to some of their most sensitive personal information,” the senators wrote.

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The lawmakers addressed their letter to U.S. Department of Education Acting Secretary Denise Carter, and asked for answers by Feb. 13, including on whether DOGE staff meet “the strict criteria” that would allow them involvement in the Education Department’s data on borrowers. Musk’s DOGE is an office within the president’s executive office, tasked with looking for ways to shrink the federal budget.

Madi Biedermann, spokesperson for the U.S. Department of Education, said DOGE staff are federal employees.

“They have been sworn in, have the necessary background checks and clearances, and are focused on making the Department more cost-efficient, effective, and accountable to the taxpayers,” Biedermann said. “There is nothing inappropriate or nefarious going on.”

The White House did not immediately respond to a request for comment.

Recent news that DOGE was granted access to the Treasury Department’s system, which includes Social Security and Medicare payments, also triggered criticism from Democratic lawmakers and advocates.

Separately, the Trump administration is considering an executive order that could shut down parts of the U.S. Department of Education, The Wall Street Journal reported Monday.

It’s uncertain what this would mean for the 42 million Americans with federal student loans. The Education Department administers the country’s $1.6 trillion in outstanding education debt.

Public Citizen Litigation Group and the National Student Legal Defense Network, representing the University of California Student Association, also filed a lawsuit on Friday against the U.S. Department of Education for sharing data with Musk’s DOGE.

“Students’ participation in federal financial aid programs doesn’t give the government carte blanche to use their personal information for whatever purposes it wants,” said Adam Pulver, an attorney at Public Citizen Litigation Group.

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