Consumer complaint received 2025-06-16 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Maximus Federal Services, Inc.
State: NV

Complaint narrative:
MOHELA Loan Servicing Attn : Legal & Compliance Division XXXX XXXX XXXX XXXX, MO XXXX Re : IMMEDIATE Demand for Discharge, Credit Suppression, and Full Legal Compliance Due to Federal Violations and Breach of Contractual Obligations To Whom It May Concern : This letter is a formal, legal demand to cease all collection activity, suppress all credit reporting, and immediately forgive/discharge all student loans associated with my personal information on file with your organization ( MOHELA ). 
I am invoking rights under the following federal laws and protections : Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. ) Fair Debt Collection Practices Act ( 15 U.S.C. 1692g ) Higher Education Act ( 20 U.S.C. 1087 et seq. ) Truth in Lending Act ( 15 U.S.C. 1666b ) Privacy Act of 1974 ( 5 U.S.C. 552a ) Gramm-Leach-Bliley Act ( 15 U.S.C. 68016810 ) Borrower Defense to Repayment ( 34 CFR 685.206 ) 1. Data Breach Violations : Your agency, and the federal servicers under the Department of Education, have suffered multiple catastrophic data breaches, compromising millions of borrowers ' personal and financial information. These include but are not limited to : XX/XX/XXXX : XXXX XXXX XXXX breach impacted numerous third-party contractors including XXXX Servicing ( which owns MOHELA ), and exposed borrower names, SSNs, account numbers, and financial data.

Ongoing unauthorized third-party access by federal subcontractors and vendors including " Doge '' AI-related scraping technologies and cross-agency data sharing directly violate the Privacy Act of 1974, which requires written consent for any access or dissemination of personal records. 


Your failure to provide notice, remedies, or opt-outs in response to these breaches has nullified your legal authority to collect or enforce any debt.

Under these breaches, the original contract has been materially broken, and I assert the principle of frustration of purpose and breach of fiduciary duty. Furthermore, your servicing rights are under review due to administrative failure to protect borrower data, making you ineligible to legally act as a collector.

2. Wet-Ink Signature Requirement : You are hereby ordered to provide a true and correct copy of the original promissory note bearing my wet-ink signature. No electronically signed Master Promissory Note ( MPN ) is legally binding without proof of : Proper informed consent at time of signing Legal standing of the lender at origination Uninterrupted chain of title and servicing agreements Failure to furnish this documentation renders the loan unverified, invalid, and unenforceable under 15 U.S.C. 1692g.

3. Immediate Demand for Forgiveness/Discharge : In light of the following legal, ethical, and administrative violations, I am not requesting I am demanding immediate full discharge of all federal and privately-backed student loans under your control, pursuant to : Borrower Defense to Repayment , due to failure to secure data, provide proper disclosure, and false claims by institutions serviced IDR Adjustment Program ( Biden-Harris administration ) I demand you count all qualifying months toward discharge, including forbearance steering, deferments, and lost records Violation of my right to due process, as I was never given proper legal notice regarding loan terms, assignment changes, or third-party disclosures 4. Removal from Credit Reporting Agencies : Your continued furnishing of inaccurate, disputed, and unverifiable student loan data to XXXX XXXX XXXX XXXX is in direct violation of 15 U.S.C. 1681s-2 ( a ). Under Metro 2 standards, any account that is : In dispute without proper validation Based on a broken contract or invalid data Reflecting incorrect balances or status due to cancellation programs must be suppressed or removed entirely from consumer credit files. I hereby demand full deletion or suppression of any account associated with MOHELA from all credit bureaus immediately.

5. You Are Now on Legal Notice : You have 30 days to respond with the following : Copy of my original wet-ink signed promissory note Full chain of assignment Documentation of forgiveness application and results Proof of data security and consent compliance Failure to comply will result in : Complaints to the Consumer Financial Protection Bureau ( CFPB ) Complaints to the U.S. Department of Education Inspector General Civil and possible criminal litigation under FDCPA, FCRA, and Privacy Act violations NO EMAIL OR VERBAL COMMUNICATION IS AUTHORIZED. RESPOND IN WRITING TO THE ADDRESS ABOVE. 
Sincerely,

Company response to consumer: Closed with explanation