Consumer complaint received 2025-02-09 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: EdFinancial Services
State: MD

Complaint narrative:
Complainant : Servicer Involved : Edfinancial Services XXXX XXXX XXXX XXXX, TN XXXX Previous Servicers : XXXX XXXX XXXX Loan Type : Three ( 3 ) Direct Subsidized Loans Complaint Summary : I am filing this complaint to formally dispute the unauthorized disclosure of my personal and financial information. Also the legitimacy of my student loan obligations transferred from XXXX to Edfinancial. Due to serious legal violations and breaches of federal privacy laws, including the Family Educational Rights and Privacy Act ( FERPA ), the Privacy Act of 1974, and the Higher Education Act, which my loan servicer, Edfinancial, failed to safeguard. 

On XX/XX/XXXX, I became aware of a major breach involving My personal educational and financial information through XXXX, XXXX, XXXX, and XXXX XXXX. Despite the public exposure of this security breach accessed by unauthorized third parties, including XXXX XXXX, Co-Head of DOGE ( department of government efficiency ) and/or DOGE Associates . This unauthorized access constitutes a gross violation of my federal privacy rights and nullifies any enforceable loan agreements under federal law., I received no direct communication from Edfinancial or my previous servicers ( XXXX XXXX and XXXX ) regarding the compromise of my sensitive data. 

Details of the Issue : 1. Unauthorized Disclosure of Personal & Financial Information : My student loan records, including personally identifiable information ( PII ), were compromised without my authorization.

Under FERPA, my student loan data is protected, and Edfinancial has a legal responsibility to ensure its confidentiality. 
The breach has exposed me to the risks of identity theft, financial fraud, and other potential damages. 
2. Failure to Notify Borrowers & Address the Breach : Despite the severity of this data breach, Edfinancial has failed to notify me or take corrective action to protect my rights as a borrower.

1. FERPA Violation : The exposure of my educational records without my express written consent is a direct breach of FERPA, which mandates the protection of personally ident
ifiable information.

2. Violation of the Privacy Act of 1974 : The mishandling and unauthorized disclosure of my personal information contravenes federal requirements that safeguard the privacy of individuals ' data managed by federal agencies and contractors.

3. Breach of the Higher Education Act : The Higher Education Act requires servicers to maintain strict confidentiality and compliance in loan transfers. The transfer of my loan to Edfinancial and subsequent data breaches demonstrate clear negligence.

4. Breach of Contract and Data Security Obligations : By failing to protect my sensitive information, both XXXX and Edfinancial breached contractual terms and obligations, rendering these debts unenforceable. 
I filed a formal dispute with Edfinancial under Case Number XXXX, requesting loan discharge due to the violation of my privacy rights.

Company response to consumer: Closed with explanation