Consumer complaint received 2024-01-08 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Improper use of your report — Reporting company used your report improperly
Company: Maximus Federal Services, Inc.
State: FL

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am writing to file a complaint against Aidvantage/ Maximus LLC regarding what I believe to be a violation of the Family Educational Rights and Privacy Act ( FERPA ). The purpose of this letter is to bring to your attention the specific details of the alleged violation and to request an investigation into the matter.

According to FERPA, educational records should be kept confidential, and disclosure of such records without consent is prohibited. I believe that Aidvantage/ Maximus has, personal information shall only be transferred to a third party on the condition that such party will not permit any other party to have access to such information without the written consent of the parents of the student.

I kindly request that the Consumer Financial Protection Bureau conduct a thorough investigation into this matter to determine whether there has been a violation of FERPA by Aidvantage/Maximus . If a violation is found, I request appropriate action be taken to rectify the situation and prevent future occurrences.

Thank you for your prompt attention to this matter. I appreciate your efforts in ensuring that consumer rights are protected.

20 U.S. Code 1232g - Family educational and privacy rights b ) Release of education records ; parental consent requirement ; exceptions ; compliance with judicial orders and subpoenas ; audit and evaluation of federally-supported education programs ; recordkeeping ( 1 ) No funds shall be made available under any applicable program to any educational agency or institution which has a policy or practice of permitting the release of education records ( or personally identifiable information contained therein other than directory information, as defined in paragraph ( 5 ) of subsection ( a ) ) of students without the written consent of their parents to any individual, agency, or organization, ( 2 ) No funds shall be made available under any applicable program to any educational agency or institution which has a policy or practice of releasing, or providing access to, any personally identifiable information in education records other than directory information, or as is permitted under paragraph ( 1 ) of this subsection, unless ( A ) there is written consent from the students parents specifying records to be released, the reasons for such release, and to whom, and with a copy of the records to be released to the students parents and the student if desired by the parents, ( B ) With respect to this subsection, personal information shall only be transferred to a third party on the condition that such party will not permit any other party to have access to such information without the written consent of the parents of the student. If a third party outside the educational agency or institution permits access to information in violation of paragraph ( 2 ) ( A ), or fails to destroy information in violation of paragraph ( 1 ) ( F ), the educational agency or institution shall be prohibited from permitting access to information from education records to that third party for a period of not less than XXXX years.

Company response to consumer: Closed with explanation