$6.5M ECSI Data Breach Settlement Ends Lawsuit Over Months-Long Cyberattack

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Educational Computer Systems, Inc. (ECSI) has agreed to a $6.5 million class action settlement to resolve a lawsuit that alleged the student loan and tax servicing vendor failed to protect sensitive information from a months-long data breach. 

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The ECSI class action settlement received preliminary approval from the court on August 5, 2026. Eligible for the settlement are all United States residents whose personal information was potentially accessed in the ECSI data breach, which occurred between October 29, 2023 and February 12, 2024.  

Court documents relay that roughly 2,577,994 people may have had their personal information accessed without authorization during the data breach.

The court-approved ECSI class action settlement website can be found at DataSettlementECSI.com.

Settlement class members who file a timely, valid claim form can receive up to $5,000 for documented out-of-pocket losses incurred due to the data breach. This benefit covers proven monetary losses that were more likely than not caused by the ECSI data incident, and costs for credit reports, credit monitoring, identity theft services or insurance, bank fees, long-distance phone charges, postage, gasoline, and more.

Class members must submit proof, such as credit card statements or receipts, to receive a documented-loss payment.

In lieu of a documented-loss payment, class members can file a claim form to receive an estimated $100 pro rata cash payment, with no proof required.

The final amount of this cash payout may be adjusted on a pro rata (proportional) basis, depending on the total number of valid claims filed, among other factors.

To submit an ECSI settlement claim form online, class members can head to this page and enter the ID and confirmation code found on their copy of the settlement notice. Alternatively, class members can download a PDF claim form to print, complete, and return by mail to the settlement administrator.

All ECSI settlement claim forms must be submitted online or postmarked by December 21, 2026.

The court will determine whether to grant final approval to the ECSI data breach settlement following a hearing on January 11, 2027. Benefits will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Educational Computer Systems, Inc. class action lawsuit alleged that the student loan servicer and higher-education financial services provider failed to implement adequate cybersecurity measures to safeguard private information from a data breach that occurred between October 29, 2023 and February 12, 2024.

Court documents state that sensitive information that may have been compromised during the data incident included names, addresses, email addresses, school names, identifiers internal to ECSI, relevant dollar amounts (tuition paid, scholarships/grants received, or student loan interest paid), last four digits of Social Security numbers, and, in certain cases, full Social Security numbers.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.