Consumer complaint received 2023-10-10
Company: Nelnet, Inc.
State: AZ
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Problem with forgiveness, cancellation, or discharge

Complaint:
My student loans were transferred from Great Lakes to Nelnet within the last two years. These student loans originated from XXXX XXXX XXXX With that being said, XXXX was involved in several litigations within the past decade due to their sudden closure and other predatory practices conducted. I have received ten or more official notices from the Dept. of Education, Great Lakes, and Borrower Defense to Repayment all informing me that these loans have been forgiven and will be paid in full and removed from my student loan servicer and taken off of my credit report. It wasn't until XXXX of this year that I actually saw the payment go through on my Nelnet account and all of my loans were cleared out as a result. It is impossible to contact Nelnet in general, but I was miraculously able to get through back in XXXX and the representative I spoke to confirmed that my loan balance is at XXXX and the credit bureaus would be informed and my loans removed from there. However, they have not followed through on this and have done some suspicious things since then. This was the only time I was able to get through to someone. For example, in XXXX I got a notice from my credit monitoring service that these loans were removed from my credit report. I was relieved and thought that this would be the end of it. Well, I was definitely mistaken. XXXX weeks later in XXXX, they added the student loans back onto my credit report and increased the loan amounts in the process. They have also done this again in XXXX, minus the removal and reapplication of the loans, just the increase in amounts. They also marked them as " installment loans '' which makes no sense. My loan balance is completely zeroed out per my Nelnet online account and official notice from the Dept. of Education, so why in the world are they doing this and able to get away with it? If they do not correct this mistake I will be taking them to court to make sure this gets resolved once and for all. 

They state that the data reported to the credit bureaus from XX/XX/2023 shows that my loans have been discharged and this is false. As stated previously, they took all of the loans off of my credit report beginning in XXXX and reapplied them back on there in XXXX. In XXXX, the only update was that they reported them as " installment loans '' and added to the balance of each individual loan. They did not report them as XXXXischarged at all, otherwise they would have been removed. 

I actually just put in a dispute through all of credit bureaus in XXXX and it was resolved a few days ago. In that, they stated that Nelnet is reporting the loans as not discharged and that they are installment loans. I will not accept this matter as resolved until all XXXX loans from XXXX are accurately reported by Nelnet as discharged and removed completely from my credit report. I can not trust that this will be done on it's own within the timeframe allotted after what they pulled so far.

Company response to consumer: Closed with explanation