Consumer complaint received 2025-05-23 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: NC

Complaint narrative:
Mohela has operated extremely unethically. This began with me calling looking to get information about the different loan repayment programs prior to the deferment from the Cares Act ended. The customer service representative was extremely hostile and when I asked for clarification or more information, she would accuse me of trying to evade payment or defraud the government. I was simply asking in regards to income calculation, did I need to provide the number for gross or net income specifically for sole proprietors, was this based off of gross income or taxable income after deductions, and if it is just taxable income, since I am filing jointly, how would I report only my taxable income since deductions apply to both my husband and I. She couldn't answer any of those questions and instead responded by saying " They will find out if your lying. '' I asked to make it simple, what line number from the1040 form do I need to put or do you need a number a line number from my Schedule C. She continued to not answer my question and accuse me of trying to change numbers. I told her I was not trying to change the numbers. I said I would be providing the exact same information from my tax return. I just needed to know what type of income of income they needed. I asked if there was any other way I could get the information and she said " no. '' I stated that I would just call FASFA and she attempted to deter me from calling FASFA for this information and it would be the same and I wasn't suppose to call them and that Mohela was the only agency I could speak to about my loan. I wanted to follow up with FASFA because I assumed that since when you are applying for student aid, it directs you to the line items on your tax return. I tried calling again and was on hold for over an hour 2 times and the call dropped another time. This all occurred between XXXX and XX/XX/XXXX. With this experience and the catastrophe with student loans that occurred this XXXX quarter of XXXX, I reported them to FERPA, however, neither FASFA nor Mohela has not allowed me to file a complaint on their website. 

FERPA Violation : My student records were disclosed and provided to individuals and agencies without my consent and without legal authorization therefore violating FERPAS strict confidentiality protections. 
Breach of the Privacy Act of 1974 : My personal and financial information was improperly accessed and shared without my authorization, violating my privacy under federal law. It has come to my attention that personal borrower information has been shared with unauthorized entities including XXXX XXXX, DOGE, and affiliated personnel which constitutes a severe violation of my civil rights causing significant harm to my financial status and physical safety. 
Fourth Amendment Violation : Sharing and disclosing my student financial records without probable cause that has been substantiated with a court order signed by the presiding judge in efforts to impose or exercise civil or criminal penalization violates my constitutional rights. This directly indicates targeted government overreach and misuse of federal power. 
Adverse Impact on Loan Repayment & Financial Standing : Due to this unauthorized access, my financial situation has been negatively affected, further justifying full loan discharge. 
Violation of the Higher Education Act : As a student borrower, my information should have been protected but the mishandling of my data demonstrates failure to uphold these legal protections. 
FCRA Violation for sect 605 and 623 Items also were wrongfully reported as 90 days past due without previous reporting of late payments. 

They also did not appropriately distribute my payments. Which resulted in an account showing unpaid. I believe they do this intentionally so that they can collect more money for that month if you pay your loan about plus that balance of the one account they did not credit with the original payment.

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