A federal judge in Maryland has issued a temporary restraining order halting officials from tech billionaire Elon Musk’s controversial Department of Government Efficiency (DOGE) from accessing sensitive student loan borrower data. The ruling delivered by Judge Deborah Boardman on Monday bars the US Department of Education and the Office of Personnel Management from sharing the personal information of millions of federal employees and student borrowers with DOGE officials. The ruling comes as a major blow to the agency’s attempts to scrutinise federal spendings, raising concerns over data privacy and government oversight.
Lawsuit accuses breach of privacy
The restraining order comes in response to a lawsuit filed by the American Federation of Teachers (AFT), a renowned labour union representing 1.8 million educators. The AFT alleged federal agencies of unlawfully allowing DOGE to access individuals’ private data without sufficient justification. The union contended that student loan borrowers entrusted the government with their personal information strictly for education financing and not for external audits by secretive government-slashing agencies.
“When people provide their financial and other personal information to the federal government—whether to secure financial aid for their children or to obtain a student loan—they expect that data to be protected and used only for its intended purpose,” said AFT President Randi Weingarten, applauding the court’s intervention.
Judge raises concerns over data misuse
DOGE, which has positioned six affiliates within the Education Department, justified its access to borrower records by stating it was investigating waste, fraud, and mismanagement in student loan programmes. Nonetheless, Judge Boardman questioned legitimacy of such extensive data collection, critiquing the government for failing to elucidate why DOGE needed “comprehensive sweeping access” to personal records, comprising Social Security numbers and income details.
The judge further noted that the plaintiffs were likely to succeed in their claim that the Education Department’s disclosure of borrower information violated the Privacy Act, a federal law formulated to safeguard individuals’ data from unauthorised access. As a result, DOGE’s access is truncated until at least March 10 at 8 AM, pending further legal proceedings.
Implications for data privacy and federal oversight
The ruling further underlines surging concerns regarding data privacy and the degree of governmental oversight. Ben Winters, director of artificial intelligence and privacy at the Consumer Federation of America, emphasized the significance of the court’s decision and said to CNBC News, “The data in question includes really sensitive information on a population of people who had to give that information for one clear purpose: borrow money to get an education.” He further added, “It’s crucial that institutions like governments only allow your data to be used for strictly the purpose you gave it for.”
A response from the White House is awaited. However, the case highlights a broader debate over privacy rights and the extent of federal agencies’ authority in accessing personal information. With the legal battle unveiling, student loan borrowers and privacy advocates alike are observing closely to see how the next chapter in this controversy unfolds.
