Consumer complaint received 2025-02-10 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: Servicer under contract with Federal Student Aid
State: KY

Complaint narrative:
Subject : FORMAL DEMAND FOR FULL STUDENT LOAN DISCHARGE FEDERAL PRIVACY VIOLATIONS & ILLEGAL DATA ACCESS To Whom It May Concern, I am writing to demand the full and immediate discharge of my federal student loans due to multiple violations of federal privacy laws, unauthorized access to my loan data, financial risk exposure, and the complete loss of consumer protections due to the illegal dismantling of the Consumer Financial Protection Bureau ( CFPB ).

Recent federal investigations, including reporting from Inside Higher Ed ( link ), confirm that the U.S. Department of Education ( ED ) has unlawfully disclosed sensitive borrower data to unauthorized entities, including the Office of Governance and Ethics ( DOGE ). As my loan servicer, XXXX has an obligation under federal law to ensure my personal and financial information is protected, yet my records have been accessed, compromised, and potentially modified without my knowledge or consent. 
Because my student loan records have been unlawfully accessed and my privacy rights have been violated, my federal loans are now subject to immediate discharge under existing legal frameworks. 

I. LEGAL BASIS FOR LOAN DISCHARGE Under federal law, student loans obtained or serviced under unlawful conditions, including violations of privacy rights and unauthorized data disclosures, may be discharged in full. My case qualifies under multiple violations of federal privacy, consumer protection, and financial security laws as follows : 1. Family Educational Rights and Privacy Act ( FERPA ) 20 U.S.C. 1232g ; 34 CFR Part 99 o My student loan records have been accessed without my consent and disclosed to unauthorized entities, violating FERPA protections.

o The Master Promissory Note ( MPN ) strictly limits third-party data access, yet my financial records have been exposed without notification or consent.

2. Gramm-Leach-Bliley Act ( GLBA ) 15 U.S.C. 6801 et seq.

o XXXX and the Department of Education failed to implement safeguards to prevent unauthorized access to my financial data.

o My personal financial data has been improperly accessed, putting me at significant financial and credit risk.

3. Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681 et seq.

o If any modifications have been made to my loan balance, terms, or repayment status without my direct authorization, this constitutes an FCRA violation.

4. Privacy Act of 1974 5 U.S.C. 552a o Federal agencies are prohibited from disclosing personal records without explicit consent, yet my student loan data has been accessed by unauthorized entities.

5. Federal Trade Commission Act 15 U.S.C. 45 o The unauthorized access and potential misuse of my financial data constitutes an unfair and deceptive practice under FTC law.

6. Internal Revenue Code 26 U.S.C. 6103 o If my Federal Tax Information ( FTI ) was accessed in connection with my student loan records, this constitutes a federal violation of tax confidentiality laws.

7. Consumer Financial Protection Bureau ( CFPB ) Violations & Loss of Consumer Rights o The illegal shutdown of the CFPB has deprived me of federal oversight, making my student loan obligations inherently unlawful.

o Without the CFPBs enforcement authority, there is no legal regulatory body protecting borrowers from misconduct, placing the full liability for compliance on XXXX

II. DIRECT IMPACT LOSS OF LOAN ENFORCEABILITY My student loan records have been unlawfully accessed, violating multiple federal laws. 
I did not authorize XXXX, the U.S. Department of Education, or any third party to access, share, or alter my student loan data beyond legal servicing requirements. 
Because my financial data has been exposed, my loans have been tainted by unlawful handling and are no longer enforceable under federal lending laws. 
Since the conditions under which my loans were serviced and maintained are unlawful, XXXX can not legally continue to enforce repayment. The only appropriate remedy is immediate loan discharge. 

XXXX. FORMAL DEMAND FOR ACTION I am formally demanding the following actions : Full and immediate discharge of my federal student loans due to unlawful data exposure and privacy violations. 
A written confirmation of which unauthorized entities accessed my records and how XXXX allowed this to occur. 
A full forensic audit of my loan account history to determine if unauthorized modifications were made. 
A formal response within 30 days outlining XXXX corrective actions and compliance measures. 
Failure to comply with this demand will result in immediate legal escalation to : The U.S. Department of Justice ( DOJ ) for a federal investigation into data privacy violations. 
The Federal Trade Commission ( FTC ) for enforcement of consumer protection laws. 
The U.S. Senate Banking Committee and House Financial Services Committee for Congressional oversight and intervention. 
If XXXX refuses to act, I will pursue all available legal avenues to ensure that my student loans are discharged and that XXXX is held accountable for its failure to comply with federal consumer protection laws. 

IV. FINAL NOTICE & ESCALATION WARNING I expect a written response and confirmation of loan discharge within 30 days from the date of this letter. Failure to comply will result in immediate legal action. 
XXXX must acknowledge that the conditions under which my loans were managed have been compromised by federal violations, making them unenforceable. 
If no action is taken, I will escalate this case to federal authorities, legal counsel, and media organizations for further exposure.

Company response to consumer: Untimely response