Consumer complaint received 2025-09-03 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Nelnet, Inc.
State: DE

Complaint narrative:
Between XXXX and XXXX, XXXX XXXX  repeatedly violated federal financial aid regulations and consumer protection laws in its handling of my XXXX XXXX student aid. Despite clear documentation that my federally funded financial aid was insufficient to meet my basic needs as an independent, off-campus, married doctoral student with dependents, the university not only failed to include all required Cost of Attendance ( COA ) categories but also imposed unlawful and burdensome documentation requirements. 

Violations of XXXX XXXX and Regulations : Under XXXX C.F.R. XXXX ( b ) and the XXXX XXXX XXXX ( XXXX ) XXXX, the COA for students in my status must include allowances for tuition and fees, housing and food, transportation, books and supplies, loan fees, dependent care, disability-related expenses, licensure/certification costs, and miscellaneous personal expenses. Federal law ( XXXX XXXX. XXXX, XXXX, XXXX C.F.R. XXXX, XXXX ) requires that students be classified independently based on XXXX data. It does not require receipts or third-party verification for standard COA categories unless a XXXX XXXX ( XXXX ) appeal is sought for unusual expenses. 

XXXX University disregarded these mandates in multiple ways : Withholding and Misreporting Aid : Aid was reported to XXXX as disbursed, but I did not receive the refunds, and some loan funds were withheld, delayed, or sequenced in a way that generated phantom interest and additional debt. This is a violation of XXXX C.F.R. XXXX, which mandates timely and accurate disbursement of XXXX XXXX funds. 
Improper Documentation Demands : The university required me to submit grocery receipts, utility bills, and even a third-party letter from my spouse as a condition for aid adjustmentrequirements not supported by federal law for baseline COA categories. This is a direct violation of XXXX C.F.R. XXXX ( b ), XXXX, and the XXXX XXXX. 
Incorrect Student Classification : I was misclassified as an in-state student, despite being out-of-state and married with dependents, reducing my allowable COA in contravention of federal eligibility standards. 
Failure to Remedy and Provide Due Process : Despite my repeated appeals, supporting documentation, and clear communication of the urgent need, my concerns were disregarded or delayed, resulting in severe financial and personal harm. 
Impact and Harm Suffered : As a result of these violations, I experienced : Utility shutoffs, housing insecurity, and food instability for my family Accrued interest and increased debt on funds I was never able to access Inability to pay for required training, licensure, and program-related expenses Emotional distress and humiliation from being forced to prove basic needs already recognized under federal law Reliance on emergency food and aid from the schools own student support office, despite being eligible for Title XXXX funds Pattern of Noncompliance : These actions are not isolated incidents or clerical errors, but constitute a systematic pattern of willful noncompliance with Title XXXX regulations and consumer protection standards. By imposing unauthorized barriers, misreporting aid, and denying funds based on unlawful requirements, XXXX University has acted in violation of both federal student aid law and the spirit of consumer financial protection.

Company response to consumer: Closed with explanation