Consumer complaint received 2025-04-15 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: AZ

Complaint narrative:
Subject : Formal Complaint Regarding Data Breach, FERPA and Title IV Violations, and Request for Immediate Discharge of Student Loans To Whom It May Concern : 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 Government Efficiency ( DOGE ). This breach constitutes a direct violation of the Family Educational Rights and Privacy Act ( FERPA ) ( 20 U.S.C. 1232g ; 34 CFR Part 99 ), Title IV of the Higher Education Act, and federal tax privacy laws, as well as an egregious violation of my personal privacy and financial security.

Upon recent discovery, I have learned that my sensitive and legally protected records were accessed and potentially shared without my consent. This includes, but is not limited to : Academic records and personally identifiable information ( PII ), including my name, Social Security number, and educational history.

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

IRS tax transcripts, which were obtained and used without proper authorization or legal justification.

These actions violate my rights under FERPA, which grants me the right to control access to my educational records, and Title IV of the Higher Education Act, which governs the use and protection of federal student aid information. Additionally, the unauthorized access to my IRS tax data raises serious concerns regarding potential identity theft, fraud, and violations of federal data security standards, including the Internal Revenue Code ( IRC ) 6103, which protects taxpayer confidentiality.

Given the severity of this breach and its direct impact on my financial security and privacy, I demand the following corrective actions : Immediate discharge and cancellation of all my federal student loans due to the breach of my financial aid and tax records, which undermines the integrity and legality of my loan agreements.

A formal investigation into this data breach, including : A detailed explanation of how my records were accessed.

Identification of the individuals or entities who accessed my records.

The specific purposes for which my records were accessed or shared.

A comprehensive 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 on my credit profile and investigate any unauthorized activity resulting from this breach. 

This breach has caused me significant distress, financial insecurity, and concern for the safety of my personal and financial data. If my demands are not addressed within 30 days of receipt of this letter, I will have no choice but to escalate this matter through legal and regulatory channels, including : Filing formal complaints with the Federal Trade Commission ( FTC ), the Consumer Financial Protection Bureau ( CFPB ), and the U.S. Department of Educations Office of Inspector General.

Pursuing legal action against the responsible parties for violations of FERPA, Title IV, and federal tax privacy laws. 

I request a written response addressing these concerns and outlining the immediate actions being taken to remedy this situation. Please direct all correspondence to the address listed above. 

Thank you for your prompt attention to this urgent matter. I expect a resolution to this issue without delay.

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