Consumer complaint received 2025-03-20 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with your payment plan
Company: Nelnet, Inc.
State: VA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  VA, XXXX XXXX XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX, IA XXXX Subject : Complaint Regarding Student Loan Mismanagement and Credit Reporting Errors by Great Lakes Educational Loan Services Dear Sir/Madam , I am writing to formally lodge a complaint against Great Lakes Educational Loan Services regarding their handling of my student loans. My experience mirrors the issues raised in the XXXXXXXX XXXX Great Lakes and XXXX XXXX Great Lakes cases, which involved misrepresentation of repayment options and inaccurate credit reporting. 

1. Misrepresentation of Repayment Options I have been a borrower with Great Lakes for several years. Throughout my repayment period, I was repeatedly advised by Great Lakes representatives to enter into forbearance rather than explore alternative repayment plans, such as income-driven repayment ( IDR ). I trusted their guidance, believing they were acting in my best interest. However, I have since discovered that this advice was misleading and financially harmful. 

By steering me into forbearance instead of recommending an IDR plan, Great Lakes allowed interest to accrue and capitalize, which significantly increased my loan balance. Had I been properly informed of all available options, including the benefits of an IDR plan, I would have avoided unnecessary interest accumulation and made more manageable payments. This conduct reflects the misrepresentation claims highlighted in the XXXXXXXX XXXX XXXX XXXX case ( XXXX ). 

2. Mismanagement During Transfer to Nelnet and Inaccurate Credit Reporting In addition to misrepresentation, my loans were part of the transfer from Great Lakes to Nelnet in XXXX following Nelnets acquisition of Great Lakes in XXXX. I experienced multiple issues during this transition, including inaccurate reporting of my loan balance and payment status. My loans were misreported to the credit bureaus, which resulted in unjustified negative marks on my credit report. 

Specifically, my loans should have been reflected as " current '' during the COVID-19 payment pause and transition period, but instead, they were reported as delinquent. This directly aligns with the issues raised in the XXXX XXXX Great Lakes case ( XXXX ), where inaccurate credit reporting led to lowered credit scores for many borrowers. Furthermore, the increased loan balance caused by mismanagement during the transition reflects a failure of proper loan servicing oversight. 

3. Missing Payment History and Restart of Repayment Timeline Since my loans were transferred to Nelnet, I have discovered that none of my previous payments made to Great Lakes are reflected on the Nelnet website. This means that my payment history including those that should count toward loan forgiveness and repayment progress appears to have been erased or disregarded during the transition. 

Additionally, Nelnet has restarted my repayment timeline as if I am beginning repayment from the first payment, effectively resetting any progress I had made toward forgiveness or completion of my repayment term. This significantly impacts my standing with the Public Service Loan Forgiveness ( PSLF ) program, as payments that should have counted toward PSLF qualification now appear to be lost or invalidated.

To make matters worse, with the Great Lakes website no longer active, I am unable to access any official record of my prior payments to Great Lakes, making it nearly impossible to dispute these discrepancies directly with Nelnet. This mismanagement has left me in financial limbo, with an increased loan balance and a longer repayment period due to lost payment history. 

4. Financial and Personal Impact As a result of these actions : My total loan balance increased due to the unnecessary capitalization of interest.

My credit score was negatively affected, which impacted my ability to secure favorable terms on other financial products.

I have endured financial and emotional stress from attempting to resolve these issues with Great Lakes and Nelnet directly. 
My repayment progress toward PSLF has been unjustly reset, requiring me to start over despite years of qualifying payments.

5. Requested Resolution Given the similarities between my case and the aforementioned legal actions, I respectfully request the following : A thorough investigation into Great Lakes ' handling of my repayment options, the transition to Nelnet, and the accuracy of their credit reporting.

Complete removal of any negative marks from my credit report related to this matter. 
Full removal of my student loans from my credit report, given that the misrepresentation and mismanagement by Great Lakes and Nelnet directly resulted in financial harm and an unjust increase in my loan balance. 
A full audit and reinstatement of all payments made under Great Lakes, including proper credit toward PSLF and my repayment timeline.

I have attached copies of my loan statements, credit reports, and any relevant communication with Great Lakes and Nelnet to support my claims. I trust that the CFPB will take this matter seriously and work toward a fair resolution. 

Thank you for your time and attention to this matter. Please feel free to contact me at XXXX if you require any additional information. 
Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation