National Student Clearinghouse (NSC) has established a $9.95 million settlement fund to resolve a class action lawsuit following the massive 2023 MOVEit file transfer security incident. The lawsuit alleged that NSC failed to implement adequate cybersecurity measures, allowing unauthorized parties to gain access to sensitive files containing names and Social Security numbers between May 28 and May 31, 2023. This breach impacted millions of individuals across hundreds of colleges and universities nationwide.
Who Qualifies for the NSC MOVEit Settlement?
The settlement is designed to benefit a nationwide class of individuals whose most sensitive data was managed by NSC at the time of the breach.
- Impacted Data: You are eligible if your Social Security number was included in the files affected by the MOVEit security incident in late May 2023.
- Institutional Scope: The breach affected data from approximately 1.5 million NSC clients across the United States.
- Verification: Eligible members typically received a unique Notice ID and PIN via mail or email to use when filing their claim.
Payout Tiers and Available Benefits
The $9.95 million fund provides several distinct levels of compensation and protection for valid claimants.
- Alternative Cash Payment: Class members can choose to receive a pro rata $100 cash payment instead of documenting specific losses. This amount may increase up to $1,000 if funds remain available.
- Ordinary Loss Reimbursement: You can claim up to $2,500 for documented out-of-pocket expenses, including bank fees, communication charges, and up to four hours of lost time spent addressing the breach at $25 per hour.
- Extraordinary Loss Reimbursement: For victims of actual identity theft or fraud, the settlement provides up to $10,000 in additional reimbursement for documented, unreimbursed monetary losses.
- Identity Protection Services: All valid claimants are entitled to two years of free three-bureau credit monitoring and identity theft insurance up to $1 million.
Required Action Steps to Secure a Payout
To receive any financial restitution or credit monitoring, you must submit a valid claim form by the 2026 deadline.
- Access the Portal: Visit NSCSettlement.com and enter your unique ID and PIN to start the process.
- Select Your Tier: Decide between the $100 flat payment or documenting your actual financial losses.
- Provide Proof (If Required): If claiming ordinary or extraordinary losses, you must upload documentation like bank statements, receipts, or invoices.
- Final Deadline: All claim forms must be submitted online or postmarked by May 26, 2026.
Case Status and Final Adjudication
The legal proceedings are moving toward final distribution in the 2026 calendar year.
- Final Approval Hearing: The court held a key hearing on May 12, 2025, and granted final approval shortly thereafter on May 13, 2025.
- Distribution of Funds: Payments and monitoring codes are expected to be sent to approved claimants following the May 26, 2026 claim deadline.
- Legal Finality: Participation in the settlement means you give up the right to sue National Student Clearinghouse individually for claims related to the 2023 MOVEit breach.
