Consumer complaint received 2025-02-11 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: EdFinancial Services
State: MN

Complaint narrative:
In [ XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX '' ), I became aware that my student loan data, including personally identifiable information ( PII ) such as my Social Security number and financial records, had been accessed without my knowledge or consent due to the U.S. Department of Educations ( DOE ) failure to properly secure borrower information. 

When I took out my federal student loans through Federal Student Aid ( FSA ), I was led to believe that my loan records were protected under FERPA ( 20 U.S.C. 1232g ), the Privacy Act of 1974 ( 5 U.S.C. 552a ), and the Higher Education Act ( 20 U.S.C. 1087 et seq. ). However, the DOE did not disclose that my personal loan data was vulnerable to unauthorized access. 

I first learned about this issue through public news reports and legal actions, including lawsuits and Senate investigations, confirming that the DOE allowed unauthorized entities to access student loan records. Specifically : Legal actions filed by labor unions allege that DOE and FSA mishandled borrower data, allowing unauthorized access. 
Senate inquiries have raised concerns about FSAs failure to secure student loan records. 
A federal judge has blocked certain DOE data access, recognizing security risks. 

Despite the DOE 's obligation to safeguard borrower data, I was never informed that my personal loan information had been improperly accessed, nor was I given any notice of potential risks. This failure to provide complete and accurate information misled me into believing my loan data was secure when it was not. 

How This Has Harmed Me : Increased risk of identity theft due to unauthorized access to my personal information. 
Financial insecurity due to uncertainty over whether my Social Security number or other sensitive data has been compromised. 
Emotional distress and loss of trust in the DOEs ability to properly manage my student loans. 

Actions Taken : I have filed a Borrower Defense to Repayment application requesting loan discharge due to this misrepresentation and failure to disclose material information. 
I have submitted complaints with other federal agencies regarding the DOEs mishandling of borrower data. 
I am requesting CFPB oversight and intervention to hold the DOE and FSA accountable for this data security failure. 

Requested Resolution : I am formally requesting the CFPB investigate the DOEs failure to protect student loan borrower data and take action to remedy the financial and emotional harm caused to affected borrowers. Additionally, I am requesting : A full discharge of my student loans due to misrepresentation and mishandling of my personal data. 
Immediate forbearance on my loans while this matter is under investigation.

A formal response from the DOE and FSA acknowledging the breach and detailing corrective actions taken.

Due to the serious nature of this issue, I request that my complaint be given full consideration, and I expect a response within the legally required timeframe.

Company response to consumer: Closed with explanation