We write to provide a brief update on the Department of Education’s implementation of the Stop Student Debt Relief Scams Act of 2020 (Public Law 116-251), also known as the Stop Act. On September 10, 2021 the Department of Education published a notice in the Federal Register to meet the Congressionally mandated deadline discussing policies for third-party access to students’ financial aid records.
As a reminder, the criminal penalties associated with the Stop Act only apply to those who access systems for the purposes of “obtaining criminal advantage or private financial gain, or in furtherance of any criminal or tortious act.” For example, an entity such as a non-profit legal services organization would not meet either prong of the test and would not be subject to the associated criminal penalties. Nor would the criminal penalties of the Stop Act apply to any other entity not engaged in criminal or tortious acts.