Nominee Moves Forward Despite Misuse Of Confidential Social Security Information

     From the New York Times (emphasis added):

A judicial nominee slated for a key Senate committee vote on Thursday helped devise an illegal Education Department effort to use private Social Security data to deny debt relief to thousands of students cheated by their for-profit colleges, according to a memo obtained by The New York Times.

The plan, outlined by Steven J. Menashi when he was acting general counsel under Education Secretary Betsy DeVos, was ruled by a federal judge to violate federal privacy laws. She ordered the department to stop the practice.

In the memo, President Trump’s appeals court nominee, who left the Education Department to join the White House legal team, outlined the department’s plan to use earnings data from the Social Security Administration to forgive only a small percentage of debts shouldered by 30,000 borrowers who attended Corinthian Colleges, a for-profit chain that the Obama administration found misled thousands of students. Corinthian’s collapse left its students and graduates with worthless degrees and mountains of debt. ...

The department halted use of the data after Judge Kim’s ruling. It had obtained the data from the Social Security Administration to implement another Obama-era regulation intended to force for-profit colleges to show that their degrees would lead to gainful employment.  

In his memo, Mr. Menashi wrote that data obtained to hold for-profit colleges accountable could be repurposed to scrutinize their students. ...

     Menashi's nomination cleared the Senate Judiciary Committee yesterday by a vote of 12-10.

Was This Data Sharing Legal?

     From the Los Angeles Times:

A group of former students defrauded by for-profit colleges is alleging in court that the Education Department illegally obtained and used their Social Security data to limit their student loan relief.

The Education Department announced in December that it will start granting some former students at the now-defunct Corinthian Colleges only partial federal student loan forgiveness, in part to save taxpayers' money. The agency said it will use students' earnings data to determine how much of their loans to forgive. 

Some students have already received notices from the department that only 50% or less of their loan will be wiped out.

A motion filed by several former Corinthian students over the weekend alleges that the Education Department obtained the earnings figures from the Social Security Administration in violation of several laws as well as the Constitution. Attorneys with the Project on Predatory Student Lending at Harvard University representing the students say the agency should have turned to the students for their data and should have notified them of its actions in order to give them a chance to react. ...

The Social Security Administration did not reply to requests for comment.

The Obama administration went hard after for-profit colleges accused of fraud, closing down Corinthian and other major chains and tightening regulations for those schools. The administration also spent $550 million to fully forgive student loans for tens of thousands of students.

[Secretary of Education Betsy] DeVos has said the Obama regulations were unfair and is writing new ones. She has said her new system of partial loan forgiveness will be fairer to students and taxpayers.

     I think these students ought to get full relief but that's not my point here. There are laws concerning inter-agency data releases. I'm no expert on them but this data release doesn't sound kosher.