Consumer complaint received 2025-04-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: Nelnet, Inc.
State: TX

Complaint narrative:
I am writing to formally file a complaint concerning serious violations related to the management and security of my student loan data. These violations have caused harm to my financial well-being, breached my federally protected privacy rights, and I am requesting that appropriate action be taken to investigate and rectify the matter, including full discharge of my student loan debt and removal of related accounts from my credit reports. 

1. Violation of FERPA ( Family Educational Rights and Privacy Act ) : As a borrower of federally guaranteed student loans, I am entitled to protections under FERPA, which mandates the confidentiality and proper use of my education records. My student loan data, which includes personally identifiable information ( PII ), was handled and shared in ways that violated these protections, especially in light of recent disclosures involving third-party servicers and unauthorized data access. These disclosures were made without my knowledge or explicit consent.

2. Violation of the Higher Education Act of XXXX : The Higher Education Act includes provisions to ensure that student loans are administered fairly and that students rights are protected. The failure to secure my sensitive financial and academic information and the inability to provide transparency and accountability from loan servicers constitutes a violation of the intent and letter of this law. 

3. Violation of the Privacy Act of XXXX : This federal law requires that federal agencies and contractors who collect, maintain, and disseminate personal information do so with explicit safeguards and procedures. My XXXX XXXX information, held and shared by the Department of Education and its contracted servicers, has been subject to data breaches and mishandling, constituting gross violations of this Act. I was not given timely notice or meaningful redress following these breaches.

4. Data Breaches and Mismanagement of Private Information : Multiple reports in recent years, including public disclosures by the Department of Education and its servicing partners, have confirmed breaches and unauthorized access of borrower data, affecting millions of student loan borrowers whose private informationincluding Social Security number, loan balances, repayment history, and other sensitive datahas been compromised.

These breaches, combined with the federal violations listed above, have not only endangered my financial privacy but have also negatively impacted my credit report and mental and emotional well-being. I did not consent to my data being exposed, nor was I provided any reasonable opportunity to prevent or mitigate this damage.

Requested Action : In light of these legal violations and the lack of accountability by the Department of Education and its third-party loan servicers, I formally request the following : 1. A full and permanent discharge of all my federal student loan obligations under the authority of borrower defense and/or violation of federal privacy laws.

2. Immediate removal of all student loan accounts from my credit report, as they are tied to improperly handled and compromised information.

3. A full investigation into how my personal information was shared, stored, and breached.

4. A clear explanation of what steps, if any, have been taken by federal authorities and servicers to address these violations and protect borrowers like me.

I respectfully request a prompt review of this complaint and look forward to your response and action. Please contact me via email or phone to confirm receipt and discuss next steps.

Thank you for your time and attention to this serious matter.

Company response to consumer: Closed with explanation