Advocacy Group Raises Concern About AI in Federal Student Aid

Student Defense, a legal advocacy group, is utilizing public records requests to explore how the Trump administration is using artificial intelligence when it comes to federal student aid. The group fears that AI work is being conducted without safeguards or oversight, posing a threat to student data privacy. They hope to bring any violation of students’ rights to light.

The public interest project, which Student Defense is calling an investigation, will be conducted in partnership with congressional oversight staff using Freedom of Information Act litigation and a tip line for government staff and contractors that has yet to be launched.

“In April 2025, the White House budget office sent a memo urging all agencies to ‘accelerate the federal use of AI’ … This directive signaled a government-wide push to integrate AI into core governmental functions, despite concerns about tech companies’ lack of compliance with federal privacy laws,” the legal group explained in a news release Thursday. “This investigation aims to determine whether this sensitive data is being shared with external AI companies, and if the federal government has taken the necessary steps to ensure staff using AI to outsource responsibilities are properly trained.”

So far, Student Defense has submitted 12 FOIA requests on the use of AI to: handle student inquiries and complaints; establish new regulations on Public Service Loan Forgiveness, loan limits and loan repayment plans; and process veterans’ education benefits in the Department of Veterans Affairs. The requests also explore contracts and agreements that have been made with AI companies to do this work.

“The American people deserve to know what’s being outsourced to AI tools, whether they can rely on the information they’re getting from the government, and whether their data is being protected from external companies,” Aaron Ament, president of Student Defense, said in the release.