Student loan -- Dealing with your lender or servicer -- Complaint #13351649
Complaint Overview
Complaint ID: 13351649
Company: Mohela
Product: Student loan
Sub-Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-Issue: Need information about your loan balance or loan terms
State: California
ZIP Code: 92555
Date Received: 2025-05-05T12:00:00-05:00
Date Sent to Company: 2025-05-05T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: No
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I am writing to formally express my concerns regarding potential violations of my rights under the Family Educational Rights and Privacy Act ( FERPA ) and the improper handling of student loan data by the Department of Education ( DOE ) and its potential transfer to the Small Business Administration ( SBA ) in 2025. As a borrower of federal student loans, I entered into a contractual agreement with the Department of Education. My promissory note explicitly states that my obligations are to the DOE, and I did not consent to any transfer of my loan management to the SBA or any other entity. The reported move of student loan oversight from the DOE to the SBA under the upcoming administration raises serious legal and ethical questions regarding the sanctity of this agreement and my rights as a borrower. Furthermore, I am deeply concerned about the improper handling of my personal and financial information. If this transfer occurs, it may constitute a breach of my right to privacy and a violation of FERPA, which protects the confidentiality of student records. I am also alarmed by the potential unauthorized access to my loan data by third-party entities, including individuals or corporations with no legal right to this information. Given the gravity of these concerns, I respectfully request that your office : 1. Investigate whether the proposed transfer of student loans from the DOE to the SBA in 2025 constitutes a breach of contract and a violation of borrower rights. 2. Examine whether this transfer or any related actions violate FERPA by exposing students ' personal and financial data to unauthorized entities. 3. Determine whether third-party entities, including private individuals or corporations, have accessed or mishandled borrower information in a manner that infringes upon privacy laws. 4. Take legal action, if necessary, to protect borrowers from any unlawful or unconstitutional policies that may arise from this transition. I urge your office to take swift action to prevent potential harm to millions of student loan borrowers who may be impacted by this unprecedented shift in student loan administration. Please provide guidance on what legal protections are available to borrowers in my situation and any steps I can take to safeguard my rights. Thank you for your time and attention to this urgent matter. I look forward to your response. Sincerely, XXXX XXXX
Frequently Asked Questions
What is Complaint #13351649 about?
Complaint #13351649 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2025-05-05T12:00:00-05:00.
How did Mohela respond to this complaint?
The company responded with: "Closed with explanation". The response was not timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Student loan) and describe your issue in detail.
Can I see other complaints against Mohela?
Yes, visit the Mohela company profile at readthecomplaint.com/company/mohela to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.