Consumer complaint received 2025-03-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: Nelnet, Inc.
State: SD

Complaint narrative:
The unauthorized access and viewing of an individual 's student loan information by any entity, including figures like XXXX Musk or organizations such as " XXXX, '' raises serious legal and ethical concerns. 
1. Privacy Violations and Federal Law : * The Privacy Act of 1974 : * This federal law governs the collection, maintenance, use, and dissemination of personal information by federal agencies. Student loan information held by the Department of Education is protected under this act.

* Unauthorized access by any third party, including a private entity, would constitute a clear violation.

* FERPA ( Family Educational Rights and Privacy Act ) : * FERPA protects the privacy of student education records. While its primary focus is on educational institutions, the principles of data protection extend to related entities handling student information.

* Student loan data is intrinsically linked to educational records, and therefore, unauthorized access infringes upon the spirit, if not the direct letter, of FERPA.

2. Contractual Obligations and Data Security : * Lender-Borrower Agreements : * When a student takes out a loan, they enter into a contract with the lender. This contract typically includes clauses regarding the confidentiality and security of personal information.

* Any unauthorized disclosure of this information breaches the contractual agreement.

* Data Security Standards : * Financial institutions and government agencies are held to strict data security standards. These standards are designed to protect sensitive information from unauthorized access.

* Failure to uphold these standards, resulting in data breaches, can lead to legal liability.

3. Potential Legal Consequences : * Civil Lawsuits : * Individuals whose privacy has been violated can file civil lawsuits seeking damages for emotional distress, financial harm, and other losses.

* Federal Investigations and Penalties : * Federal agencies, such as the Department of Education and the Federal Trade Commission, can investigate data breaches and impose penalties on those responsible.

* Criminal Charges : * In cases involving malicious intent or large-scale data breaches, criminal charges may be filed. 
XXXX. The specific case involving XXXX XXXX and " XXXX '' : * XXXX reports have indicated concerns and legal challenges regarding access to student loan data by entities associated with XXXX XXXX. 
* It is very important to note that any access to private data must be done with proper legal permissions. Any access outside of those legal permissions is a violation of the law. 
* The core issue revolves around the legality of the access, the scope of the data shared, and the intended use of that information. 
* The fact that student groups and teacher unions have taken legal action, shows that there are significant legal concerns. 
In conclusion, the unauthorized viewing of student loan information is a serious offense with potential legal and ethical ramifications. It is essential to uphold the privacy and security of sensitive financial data.

Company response to consumer: Closed with explanation