By Lucas Downey, Senior Correspondent
Thousands of Americans, particularly students and educators, have until Monday, May 26, 2025, to file claims for compensation from a $9.95 million class action settlement stemming from a 2023 data breach at the National Student Clearinghouse (NSC).
The breach, which occurred between May 28 and May 31, 2023, compromised sensitive personal information, including Social Security numbers, due to vulnerabilities in the MOVEit file transfer software used by NSC.
Settlement Overview
The class action settlement provides financial relief to those affected by the breach. The compensation structure includes multiple options:
- Ordinary Losses: Eligible individuals can claim up to $2,500 for expenses such as bank fees, communication charges, credit monitoring costs, and up to four hours of lost time at $25 per hour.
- Extraordinary Losses: Claims of up to $10,000 are available for significant unreimbursed monetary losses, including damages from fraud, professional service fees, and credit repair expenses.
- Alternative Cash Payment: For those who prefer not to claim specific losses, a flat $100 cash payment option is available. This amount may be adjusted depending on the number of valid claims received.
- Credit Monitoring: All claimants are eligible for two years of free credit monitoring and identity theft protection services. These services include three-bureau credit monitoring, real-time alerts, and up to $1 million in identity theft insurance coverage.
Eligibility Criteria
Individuals whose Social Security numbers were included in the files compromised during the breach are eligible to participate in the settlement. Those who received direct notification from the NSC about the incident likely received a Unique ID and PIN needed to file a claim.
If you did not receive this information but believe you are affected, you can contact the Settlement Administrator for assistance in verifying your eligibility and retrieving your credentials.
How to File a Claim
Eligible individuals must provide documentation to support their claims. Acceptable forms of proof include bank statements, invoices, receipts, phone records, or other documents that clearly demonstrate out-of-pocket expenses or losses related to the data breach.
Claims can be submitted through the following methods:
- Online: Complete and submit the claim form via the official settlement website.
- Mail: Download and complete the paper claim form, attach supporting documents, and mail it to the Settlement Administrator at the following address:
MOVEit National Student Clearinghouse Settlement Administrator
P.O. Box 2878
Portland, OR 97208-2878
All claims must be either submitted online or postmarked by May 26, 2025, to be considered valid.
Breach Background
The National Student Clearinghouse is a nonprofit organization that provides educational reporting, verification, and research services for schools, students, and employers. The breach in question resulted from a cyberattack that exploited a vulnerability in the MOVEit file transfer software. This vulnerability enabled unauthorized parties to access and exfiltrate sensitive personal data from NSC systems.
Approximately 1.5 million individuals were impacted by this incident. In response, NSC took steps to investigate the breach, secure its systems, and notify affected parties. Although the organization does not admit any wrongdoing, it agreed to the settlement to resolve all claims associated with the breach and to avoid prolonged litigation.
What’s Next for Affected Individuals
For many, this settlement provides an opportunity to recover losses and gain peace of mind through complimentary credit monitoring services. Those impacted should take immediate action to verify their eligibility, gather necessary documentation, and file a claim before the deadline.
The settlement also serves as a reminder of the importance of digital security and the consequences that data breaches can have on personal and financial well-being. By taking advantage of the protections offered in this settlement, claimants can better safeguard their futures.