Consumer complaint received 2025-02-11 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: MOHELA
State: MD

Complaint narrative:
Credit Bureaus XXXX, XXXX, XXXX, XXXX XXXX ] Subject : Formal Complaint Regarding Data Breach, FERPA and Title IV Violations, and Request for Immediate Discharge of Student Loans Dear To Whom it May Concern for MOHELA, FERPA, FSA, and Department of Education, I am writing to formally lodge a complaint regarding the unauthorized access and breach of my educational records, financial aid data, and IRS tax information by the U.S. Department of Education ( DOE ) and the Department of Governmental Entities ( DOGE ), with direct responsibility falling on the student loan servicer MOHELA under the Federal Student Aid ( FSA ) program. This breach constitutes a direct violation of my rights under the Family Educational Rights and Privacy Act ( FERPA ) ( 20 U.S.C. 1232g ; 34 CFR Part 99 ), the Higher Education Act Title IV, the Gramm-Leach-Bliley Act ( GLBA ), the Right to Financial Privacy Act ( RFPA ), and the Federal Information Security Modernization Act ( FISMA ).

As MOHELA is contracted by the Department of Education under FSA, they bear the responsibility of safeguarding my personally identifiable information ( PII ) and ensuring compliance with all applicable federal and state privacy and security laws.

I recently discovered that my sensitive and legally protected records were accessed and potentially shared without my consent. This includes, but is not limited to : My academic records and personally identifiable information ( PII ).

My Free Application for Federal Student Aid ( FAFSA ) data, including financial aid history and loan information.

My IRS tax transcripts, which were obtained and used without proper authorization.

These actions violate my rights under FERPA, which grants me the right to control access to my educational records, as well as Title IV of the Higher Education Act, which governs the use and protection of federal student aid information. Furthermore, unauthorized access to my IRS tax data raises serious concerns regarding potential identity theft, fraud, and violations of federal data security standards under the GLBA, RFPA, and XXXX. 

Given the severity of this breach and the direct impact on my financial security and privacy, I demand the following corrective actions : XXXX discharge and cancellation of all my federal student loans due to the breach of my financial aid and tax records, which invalidates the integrity of my loan agreements. 
A formal investigation into this data breach, including details on how my records were accessed, who accessed them, and for what purpose. 
A full report on the extent of my data exposure and the corrective measures being implemented to prevent future violations. 
Immediate notification to all major credit bureaus ( XXXX, XXXX, XXXX, and XXXX XXXX ) to place a fraud alert and investigate any unauthorized activity that may have resulted from this breach.

A security audit of MOHELAs data-handling and privacy practices, to ensure that they are meeting all necessary legal standards for safeguarding my sensitive data.

This breach has caused significant distress and concern regarding the security of my personal and financial data. Given the violation of multiple federal and state laws, including XXXX, XXXX, XXXX, XXXX, and Title IV regulations, I am considering taking legal action for breach of privacy, violation of these laws, and any other applicable consumer protections under federal law. I also reserve the right to file complaints with the Federal Trade Commission ( FTC ), the Consumer Financial Protection Bureau ( CFPB ), and pursue further legal recourse against MOHELA, the U.S. Department of Education, and any other involved parties. 

If my demands are not met within 30 days, I will have no choice but to escalate this matter through legal channels, including the possibility of filing a class action lawsuit or seeking further regulatory oversight. 

Please provide a written response addressing these concerns, along with a clear outline of the immediate actions being taken to remedy this situation. All correspondence should be directed to the address listed above. 

Thank you for your prompt attention to this urgent matter. I look forward to your immediate response and resolution. 

Sincerely, XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation