Consumer complaint received 2024-12-19 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: Nelnet, Inc.
State: FL

Complaint narrative:
I am filing this complaint regarding NelNets improper disclosure of my student educational records, which violates the Family Educational Rights and Privacy Act ( FERPA ), codified under 20 U.S.C. 1232g. Specifically, NelNet has reported details of my student loan recordssuch as my current balance, original loan amount, and repayment historyto credit reporting agencies without my consent, in direct violation of FERPA protections.

FERPA prohibits the disclosure of educational records to third parties without written consent from the student, except in specific and narrowly defined circumstances. NelNets actions do not fall under any allowable FERPA exceptions. Furthermore, I never entered into any contract with NelNet authorizing them to report my information, which further invalidates their authority to disclose my records to third parties.

Violation Details : Unauthorized Disclosure : Under FERPA ( 20 U.S.C. 1232g ( a ) ( 4 ) ( A ) ), " educational records '' include records directly related to a student and maintained by an educational institution or a party acting on its behalf. My student loan records qualify as protected educational records.

NelNet disclosed my loan balances and repayment history to credit bureaus, which FERPA prohibits unless explicitly authorized by me.

No Consent Given : FERPA ( 20 U.S.C. 1232g ( b ) ( 1 ) ) prohibits disclosure of educational records to third parties without written consent from the student. I have not provided NelNet with any written consent for such disclosures.

Misapplication of Financial Aid Exception : FERPA provides a narrow exception for financial aid purposes ( 20 U.S.C. 1232g ( b ) ( 1 ) ( D ) ), permitting disclosures only if necessary for determining eligibility, enforcing loan terms, or processing aid.

Reporting my loan data to credit bureaus is not necessary to service my loan and does not fall under this exception.

No Contractual Relationship : I have no direct contract with Nelnet. Without my explicit agreement, NelNet has no authority to disclose my educational records to credit bureaus.

Legal Basis for the Complaint : FERPA ( 20 U.S.C. 1232g ( a ) ( 4 ) ( A ) ) : Defines " educational records '' as records directly related to a student and maintained by an educational institution or a party acting on its behalf.

FERPA ( 20 U.S.C. 1232g ( b ) ( 1 ) ) : Prohibits the disclosure of educational records to third parties without written consent from the student, except under narrow exceptions.

FERPA Financial Aid Exception ( 20 U.S.C. 1232g ( b ) ( 1 ) ( D ) ) : Permits disclosure without consent only if necessary for determining financial aid eligibility or enforcing aid terms. Reporting data to credit bureaus does not qualify.

Impact on Me : Privacy Violation : NelNets unauthorized reporting of my educational records has violated my federally protected privacy rights under FERPA.

Creditworthiness Impact : The disclosure of sensitive loan information to credit bureaus has subjected me to unnecessary scrutiny, potentially harming my ability to access favorable financial terms.

Loss of Control Over Educational Records : By disclosing my educational records without consent, NelNet has deprived me of control over how my private data is handled and shared.

Company response to consumer: Closed with explanation