Consumer complaint received 2025-04-13 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: NJ

Complaint narrative:
This is a formal legal demand for immediate investigation and permanent deletion of all student loan accounts reported under the tradeline " DEPT OF XXXX, '' which is NELNET, XXXX my credit report. These accounts include all loanssubsidized, unsubsidized, and Parent PLUSand their continued presence on my report constitutes an egregious violation of federal privacy statutes and consumer protection law. 

It has come to light through extensive reporting and insider disclosures that entities affiliated with or under the operational influence of XXXX XXXX, specifically DOGE-related ventures, gained illegal and unrestricted access to sensitive borrower data stored within Department of Education systems. This information includes the entirety of my student loan file, which is protected under longstanding federal privacy law and explicit contractual obligations governing the use, access, and safeguarding of this data. 

The unauthorized access to my personal and financial records constitutes a direct violation of the Privacy Act of 1974, the Family Educational Rights and Privacy Act ( FERPA ), the Higher Education Act, and the Federal Trade Commission Act, among others. In addition, the Department of Education, by failing to prevent such a breach, has defaulted on its contractual duties, materially violating the terms of agreement I entered into as a borrower. As a matter of contract law, this breach voids the contract in its entirety, rendering all outstanding balances unenforceable. The contract is no longer valid and therefore all associated reporting must cease immediately. 

Furthermore, under the Fair Credit Reporting Act, specifically 15 U.S. Code 1681e ( b ), consumer reporting agencies are required to report only information that is complete and verifiable. The data being reported by your bureau in relation to the " DEPT OF EDUCATION/NELN '' tradeline is now under legal dispute due to illegality of origin and breach of contract. Continued furnishing or reinsertion of this information without legal justification or lawful verification constitutes willful noncompliance with federal law, making your agency liable under 15 U.S. Code 1681n and 1681o for civil damages. 

Nelnet, the loan servicer responsible for these accounts, is equally liable for their role in the breach. As the originating furnisher of this erroneous and contractually voided data, Nelnet must immediately cease all furnishing of student loan information related to my name and render all associated accounts as deleted and paid in full, or otherwise indicate closure in good standing with XXXX balance due. It is unlawful and unconscionable to continue enforcing repayment obligations upon a client whose contractual terms have been breached by the government and its appointed agents. As such, I owe no further amount under any condition, and the record of these accounts must reflect that accordingly. 

Any delay or attempt to obstruct this dispute under the guise of identity verification is hereby nullified. My government-issued identification, including the front and back of my drivers license, my social security verification, and XXXX XXXX statement showing my current address, are all included in the PDF file named XXXX XXXX XXXX' which is already uploaded to the CFPB complaint system. This document satisfies all verification standards imposed by any bureau or furnisher. Therefore, I demand that you acknowledge receipt of this dispute and cease all reporting activity related to the tradeline in question until the matter is resolved. I will pursue legal recourse in small claims court and escalate to federal jurisdiction should you ignore or inadequately address this matter. My legal team is fully prepared to pursue compensatory and punitive damages for emotional, financial, and reputational harm. 

You have been formally notified.

Company response to consumer: Closed with explanation