Consumer complaint received 2025-06-28 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: TX

Complaint narrative:
Follow-Up Actions : Nelnet Policy Compliance, Legal Violations, and Requests for Records Date : XX/XX/2025 This report consolidates all findings, legal violations, and follow-up actions concerning Nelnets practices, including their misrepresentation as a loan servicer while engaging in debt collection practices, their violation of federal and state laws, and a formal request for records under the Family Educational Rights and Privacy Act ( FERPA ). Supporting documentation is included to substantiate the claims and ensure accountability. 1. Summary of Complaint Against Nelnet Key Allegations : Misrepresentation as Loan Servicer :
Nelnet claims to operate as a loan servicer, but their actions, particularly in relation to my XXXX  credit report, demonstrate they are operating as a debt collector. This misrepresentation is misleading and potentially unlawful.

Debt Collection Practices : Nelnet has engaged in practices consistent with debt collection, including reporting derogatory information on my credit report.

They have failed to validate the alleged debt or resolve disputes in compliance with the Fair Debt Collection Practices Act ( FDCPA ) and Fair Credit Reporting Act ( FCRA ).

Failure to Address Disputes Properly : Nelnet continues to report inaccurate information without conducting a reasonable investigation, violating FCRA and XXXX XXXX standards for credit reporting accuracy.

Potential FERPA Violations by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, the educational institution associated with the alleged loan, must provide a complete disbursement and account record to verify the legitimacy of the loan and ensure compliance with FERPA.

2. Legal Violations Identified Fair Debt Collection Practices Act ( FDCPA ) : 15 U.S.C. 1692e : Misrepresentation of their role as a loan servicer while engaging in debt collection.

15 U.S.C. 1692f : Reporting inaccurate debts and continuing collection activities without validation.

15 U.S.C. 1692c : Failure to cease communication after a written request.

Fair Credit Reporting Act ( FCRA ) : 15 U.S.C. 1681e ( b ) : Failure to ensure maximum possible accuracy of reported information.

15 U.S.C. 1681i ( a ) : Failure to conduct a reasonable reinvestigation of disputed information.

15 U.S.C. 1681s-2 : Failure to correct or delete inaccurate information after notification.

Federal Trade Commission ( FTC ) Regulations : Section 5 of the FTC Act : Engaging in deceptive practices by reporting inaccurate debts and failing to disclose material facts.

Texas Finance Code ( Chapter 392 ) : 392.304 : Reporting false or misleading information about a consumer debt.

392.301 : Engaging in deceptive and harmful practices.

392.101 : Failure to maintain a surety bond with the Texas Secretary of State.

Family Educational Rights and Privacy Act ( FERPA ) : 20 U.S.C. 1232g : Failure of XXXX XXXX XXXX XXXX to provide access to educational and financial records related to the alleged loan.

3. Follow-Up Complaint for CFPB Online Portal Subject : Follow-Up Complaint Against Nelnet :
Misrepresentation as Loan Servicer and Debt Collection Practices Complaint Summary : Nelnet has claimed they are a loan servicing company, but their actions in relation to my XXXX  credit report clearly indicate they are operating as a debt collector. This misrepresentation is misleading and raises concerns about their compliance with federal and state laws, including the FDCPA and FCRA.

Details of the Complaint : Misrepresentation as a Loan Servicer : Nelnets response to my initial complaint states they are a loan servicing company. However, their actions demonstrate behavior consistent with that of a debt collector.

Specifically, Nelnet has reported derogatory information on my XXXX  credit report in a manner that aligns with debt collection practices, not loan servicing.

Debt Collection Activities : Nelnet has failed to validate the alleged debt in response to disputes, which is a requirement under 15 U.S.C. 1692g ( b ) of the FDCPA.

Despite disputing the accuracy of the debt, Nelnet continues to report the account as delinquent without proper investigation or correction, violating 15 U.S.C. 1681i ( a ) of the FCRA.

Failure to Provide Transparency : Nelnet has not provided a clear explanation of their role in this matter. If they are acting as a debt collector, they must comply with all FDCPA requirements, including proper validation of the debt and ceasing collection activities until the dispute is resolved.

Requested Actions : Detailed Explanation from Nelnet : Whether they are acting as a loan servicer or a debt collector.

Why they are reporting derogatory information on my credit report if they claim to be a loan servicer.

The legal basis for their continued reporting of this account as delinquent despite my dispute. Compliance with Federal Laws : Proper validation of the alleged debt. Ceasing all collection activities and reporting until the dispute is resolved.

Correction or Removal of Inaccurate Information : Nelnet must correct or remove any inaccurate, incomplete, or unverifiable information from my XXXX  credit report immediately.

Documentation of Their Actions : Provide documentation of all actions taken in relation to this account, including internal investigation processes and communication with XXXX. 
4. FERPA Request for Records from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Date : XX/XX/2025 To : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Subject : Formal Request for Complete Disbursement and Account Records Under FERPA Dear XXXX XXXX XXXX XXXX XXXX XXXXXXXX, I am writing to formally request a complete disbursement of account records related to the alleged loan associated with my name, as permitted under the Family Educational Rights and Privacy Act ( FERPA ).

Requested Records : Loan Disbursement Records : Dates, amounts, and recipients of all disbursements.

Loan Authorization Documentation : Copies of any loan agreements or signed authorizations.

Financial Aid Records : Origination, processing, or management of the alleged loan.

FERPA Compliance Documentation : Disclosures of my information to third parties ( e.g., Nelnet ).

Delivery of Records : Please provide the requested records in digital format via email to XXXX or physical copies to my address listed above. 

FERPA requires that you provide access to the requested records within 45 days of receiving this letter. If you fail to comply, I will file a formal complaint with the U.S. Department of Educations Family Policy Compliance Office.

Thank you for your prompt attention to this matter. 

Sincerely, Jacklyn V. Tejeda 5. Supporting Documentation The following documents are attached to support this report and complaints : XXXX  Credit Report : Demonstrating Nelnets derogatory reporting.

Nelnet Response Letter : Stating their claim to be a loan servicer.

FTC Complaint Confirmation ( # XXXX ) : Outlining related concerns.

Relevant Laws and Regulations : Supporting evidence of Nelnets potential violations of FDCPA, FCRA, and CFPB rules.

FERPA Request Letter : Formal request to XXXX XXXX XXXX XXXX for loan-related records. 
6. Conclusion This comprehensive report highlights Nelnets potential violations of federal and state laws, their misrepresentation as a loan servicer, and their failure to address disputes properly. It also includes a formal FERPA request to XXXX XXXX XXXX XXXX to obtain records verifying the alleged loan. 

Further legal action will be pursued if compliance is not achieved. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation