The Department of Education’s Office of Inspector General (OIG) has opened a formal investigation into sensitive federal student loan data systems, after concerns were raised about the Department of Government Efficiency (DOGE) gaining access to private information.

This move comes after Sen. Elizabeth Warren (D-Mass.) and other Democratic lawmakers called for a probe into DOGE’s alleged “infiltration” of the Federal Student Aid (FSA) office, which manages the country’s $1.6 trillion student loan portfolio.

Why the Investigation Matters

The Education Department watchdog confirmed it will examine how the agency manages access to sensitive borrower information, including Social Security numbers, income data, and records within the National Student Loan Data System.

The review will be conducted in coordination with the Government Accountability Office (GAO). However, officials have not provided a timeline for when findings will be released.

“The American people deserve to know if Elon Musk’s DOGE team had access to private Social Security numbers and income information,” Sen. Warren told ABC News. “It’s about time these amateurs in the Education Department were investigated.”

White House and Court Involvement

The Trump administration recently filed an emergency request with the U.S. Supreme Court, asking to lift a lower-court block on DOGE’s authority to access data from multiple federal agencies, including student loan systems.

Administration officials maintain that DOGE’s work is “legal,” “undisputed,” and producing “historic results.”

Democrats Push Back

Sen. Warren and her colleagues argue that the public deserves transparency on who has handled their personal records. In June, Senate Democrats accused the Education Department of stonewalling Warren’s congressional investigation into DOGE’s access to confidential files.

Sen. Ben Ray Luján (D-N.M.) emphasized the stakes:

“The Department of Education has a responsibility to protect student loan borrowers’ sensitive data and ensure it doesn’t fall into the wrong hands. I’m thankful the OIG is finally taking action.”

Impact on the Department of Education

The controversy comes amid major upheaval at the Education Department. Earlier this year, Warren launched her “Save Our Schools” campaign after the administration announced widespread staff cuts — reducing the agency’s workforce by nearly 50%, including hundreds of FSA employees.

Warren, a longtime advocate for public education, warned that these cuts will hurt students’ access to higher education and pledged to fight the restructuring efforts.

New Leadership and DOGE’s Role

The department has undergone major leadership changes since Secretary of Education Linda McMahon was sworn in. McMahon, who has years of private sector experience, praised DOGE’s audit of the department as a step toward efficiency.

However, critics warn that outsourcing oversight of sensitive data to DOGE could put millions of borrowers at risk.

Key Takeaways

• OIG investigation launched into DOGE’s access to federal student loan data.

• $1.6 trillion portfolio at stake, affecting millions of borrowers.

• Sen. Elizabeth Warren leading the fight for accountability.

• White House defends DOGE, calling its work legal and effective.

• Education Department cuts spark new fears about oversight and security.