Consumer complaint received 2025-05-05 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: MOHELA
State: FL

Complaint narrative:
I am writing to file a formal complaint under the Family Educational Rights and Privacy Act ( FERPA ), 20 U.S.C. 1232g and 34 C.F.R. Part 99, concerning the unauthorized disclosure, access, and transfer of my federal student loan data, inaccurate loan reporting, and violations of my rights during a XXXX  XXXX XXXX  case. These actions have caused ongoing hardship for me and my family. 

Background of Loan Servicing Issues : My federal student loans were originally serviced by XXXX. Without my knowledge or written consent, servicing was transferred to XXXX XXXX XXXX. 

While I was in an active XXXX XXXX XXXX ( which has since been dismissed ), the trustee made payments to XXXX, but these payments are not accurately reflected in my current loan records. 

I am now receiving unsolicited communications from Mohela, which is now servicing these loans under account number XXXX, again without my permission or any formal notice. 

I also held a separate federal student loan originally serviced by XXXX XXXX XXXX XXXX XXXX XXXX ). This loan was transferred to XXXX without my consent. Importantly, XXXX never filed a proof of claim during my XXXX XXXX XXXX, which raises questions about the legitimacy and handling of that account under bankruptcy protections. 

Impact on My Life : I am a XXXX XXXX striving to support my family. The stress caused by unauthorized data transfers, misreporting of balances, and unexpected servicer changes is creating severe financial and emotional hardship. The reported loan balance on XXXX is {$49000.00}, which appears to be inaccurate given payments made through the XXXX  trustee and lack of proper reporting. This has affected my credit score, access to housing, employment opportunities, and ability to financially plan for my future. 

Violations of Federal Law : FERPA 20 U.S.C. 1232g ; 34 C.F.R. Part 99 My educational records, including federal student loan data, were accessed and transferred to multiple servicers ( XXXX, Mohela, and XXXX  ) without proper notification or written consent, violating my FERPA rights regarding disclosure of personally identifiable information ( PII ). 

Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681e ( b ) The loan information reported to credit bureaus is materially inaccurate, particularly the balance and missing payments made during my XXXX XXXX XXXX Code Violations 11 U.S.C. 362 & 524 During my active XXXX XXXX XXXX, certain payments were made by the trustee but were not credited to my account. Additionally, XXXX failed to file a claim, yet the debt appears to persist with XXXX, raising concerns about post-XXXX  collection actions or improper re-aging of the account. 

Privacy Act of XXXX  5 U.S.C. 552a My federal loan data, which is maintained in government systems or by authorized contractors, was shared or modified without lawful basis or proper disclosure, potentially violating my rights under this Act. 

Relief Requested : I respectfully request the following : A full investigation into the unauthorized servicing transfers and data disclosures to XXXX, Mohela, and XXXX. 

Verification of whether any of these transfers or data accesses were made with proper legal authority or borrower consent. 

Correction of the student loan balances to reflect all payments made under my XXXX XXXX XXXX, including addressing XXXX  failure to file a claim. 

A directive to prevent any further unauthorized contact, servicing changes, or reporting of inaccurate information. 

Consideration of my status as a XXXX XXXX facing ongoing hardship due to this situation. 

I am prepared to provide supporting documentation, including : My XXXX  petition and trustee payment ledger, Screenshots and account summaries from XXXX, Communications from Mohela and XXXX, A timeline of servicer changes. 
Also I was not allowed to get a PXXXX XXXX XXXX XXXX XXXX XXXX  ), I was XXXX  for XXXX in XXXX XXXX 

Thank you for taking this matter seriously and for advocating for the privacy and rights of federal student loan borrowers like myself.

Company response to consumer: Closed with explanation