Student loan -- Struggling to repay your loan -- Complaint #14383643
Student Loan Borrower Alleges FERPA Violations and Record Access Denial
Complaint Overview
Complaint ID: 14383643
Company: Servicer Under Contract With Federal Student Aid
Product: Student loan
Sub-Product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-Issue: Problem with forgiveness, cancellation, or discharge
State: Maryland
ZIP Code: 21213
Date Received: 2025-06-30T12:00:00-05:00
Date Sent to Company: 2025-07-09T12:00:00-05:00
Company Response: Untimely response
Timely Response: No
Consumer Disputed: N/A
Submitted Via: Web
Risk Assessment
Risk Level: high
The alleged unauthorized disclosure of financial aid data and denial of access to records could indicate systemic issues with data privacy and borrower rights, potentially leading to significant legal and reputational damage.
Consumer Sentiment: negative
Topics: FERPA, Student Loans, Privacy, Data Security
AI Analysis
CFPB complaint 14383643 was filed against Servicer under contract with Federal Student Aid regarding Student loan (Federal student loan servicing), specifically about "Struggling to repay your loan". A student loan borrower alleges a violation of their FERPA rights due to unauthorized access/disclosure of financial aid data and denial of access to their own records. The complaint was received on June 30, 2025 from Maryland. The company responded with "Untimely response".
Consumer Narrative
I am report a violation of my rights under the Family Educational Rights and Privacy Act ( FERPA ) regarding the unauthorized access and/or disclosure of my financial aid data without my prior consent. Additionally, I have been denied access to my own financial aid records, further infringing upon my rights as protected by federal law. Right to Privacy ( 34 CFR 99.30-99.31 ), the law says my financial aid information, which falls under the category of " education records, '' can not be disclosed to third parties without my explicit written consent, except under certain legally permitted circumstances. The unauthorized access or sharing of my financial aid data without my consent directly contradicts FERPA regulations, potentially exposing my personal and financial information to misuse.
What You Should Do -- Consumer Action Plan
Consumers should be aware of their rights under FERPA and document all communications with loan servicers, especially regarding data access and disclosure.
Legal Context & Consumer Protection Laws
FERPA (34 CFR 99.30-99.31) protects the privacy of student education records, including financial aid information, and generally requires written consent for disclosure.
Regulatory Insight
This complaint highlights the critical need for federal loan servicers to strictly adhere to FERPA regulations to prevent unauthorized data access and ensure borrowers can access their own records.
Resolution Likelihood
likely
State-Specific Consumer Protections
The complaint originates from Maryland and involves federal student loan servicing.
Industry Comparison
Complaints regarding FERPA violations and data privacy are a significant concern across the education and financial services industries.
Related Issues
Frequently Asked Questions
What is CFPB complaint 14383643 about?
CFPB complaint 14383643 involves Student loan (Federal student loan servicing). The consumer reported an issue with "Struggling to repay your loan", specifically "Problem with forgiveness, cancellation, or discharge". This complaint was filed against Servicer under contract with Federal Student Aid on June 30, 2025.
Which company is complaint 14383643 filed against?
Complaint 14383643 was filed against Servicer under contract with Federal Student Aid. You can view all complaints against this company on their profile page at /company/servicer-under-contract-with-federal-student-aid.
What was the company's response to complaint 14383643?
Servicer under contract with Federal Student Aid responded with "Untimely response". The response was NOT marked as timely by the CFPB.
When was complaint 14383643 filed?
Complaint 14383643 was received by the CFPB on June 30, 2025. It was sent to Servicer under contract with Federal Student Aid on July 9, 2025.
What state was complaint 14383643 filed from?
Complaint 14383643 was filed from Maryland. You can view all complaints from this state at /state/MD.
Was the consumer satisfied with the resolution of complaint 14383643?
Dispute information is not available for complaint 14383643.
What product category is complaint 14383643 about?
Complaint 14383643 is categorized under "Student loan", specifically "Federal student loan servicing". This is one of the product categories tracked by the CFPB.
How was complaint 14383643 submitted?
Complaint 14383643 was submitted via Web. The CFPB accepts complaints through web, phone, mail, email, fax, and referral channels.
What are the consumer's legal options for complaint 14383643?
FERPA (34 CFR 99.30-99.31) protects the privacy of student education records, including financial aid information, and generally requires written consent for disclosure. This relates to a Student loan complaint against Servicer under contract with Federal Student Aid involving "Struggling to repay your loan".
How likely is complaint 14383643 to be resolved?
Resolution likelihood: likely. The company's current response is "Untimely response".
What does the risk level mean for complaint 14383643?
This complaint is rated as high risk. The alleged unauthorized disclosure of financial aid data and denial of access to records could indicate systemic issues with data privacy and borrower rights, potentially leading to significant legal and reputational damage.
What regulatory actions apply to complaint 14383643?
This complaint highlights the critical need for federal loan servicers to strictly adhere to FERPA regulations to prevent unauthorized data access and ensure borrowers can access their own records. The CFPB tracks complaints like this one to identify patterns of misconduct across the Student loan industry.
What should the consumer do about complaint 14383643?
Consumers should be aware of their rights under FERPA and document all communications with loan servicers, especially regarding data access and disclosure.
Are there state-specific protections for complaint 14383643?
The complaint originates from Maryland and involves federal student loan servicing. This complaint was filed from Maryland.
How does complaint 14383643 compare to industry norms?
Complaints regarding FERPA violations and data privacy are a significant concern across the education and financial services industries.
What specific actions has the servicer taken to ensure compliance with FERPA regarding financial aid data?
The servicer should have policies and training in place to prevent unauthorized access and disclosure of student education records, including financial aid data, and to facilitate borrower access to their own records.
What recourse does the borrower have if their FERPA rights have been violated?
The borrower may have grounds to file a complaint with the Department of Education's Family Policy Compliance Office and potentially pursue legal action against the institution or servicer.
Disclaimer
This analysis is AI-generated and does not constitute legal advice.