Consumer complaint received 2025-01-28 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Nelnet, Inc.
State: FL

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX Consumer Financial Protection Bureau XXXX XXXX XXXXXXXX XXXX  XXXX XXXX Subject : Formal Complaint Regarding Improper Interest Accrual on Student Loan Dear XXXX XXXX I am filing a formal complaint regarding improper interest accrual on my student loan account, serviced by Nelnet, while I was enrolled in the Saving on a Valuable Education ( SAVE ) Plan. This complaint concerns XXXX, which was applied to my account despite the SAVE Plan 's provisions that guarantee no interest accrual during {$0.00} payment periods. 

Summary of the Complaint : Improper Interest Accrual Despite Eligibility for {$0.00} Payments. Under the SAVE Plan, borrowers eligible for {$0.00} payments should not accrue interest. This interest charge violates the program 's terms, which were implemented to protect borrowers from unnecessary debt accumulation. 

Inadequate Response from Loan Servicer Shortly after discovering the interest charge, I contacted Nelnet. A representative assured me that the interest would be removed. However, the charge remains on my account. Additionally, when I spoke with a supervisor, they could not explain the origin of the interest charge and promised a follow-up, which never occurred. 

Press Release by Education Secretary XXXX XXXX In response to the 8th Circuit Court of Appeals siding in favor of a lawsuit challenging the SAVE program, Education Secretary XXXX XXXX stated on XX/XX/XXXX, that borrowers enrolled in the SAVE plan will be placed in an interest-free forbearance. Despite this guarantee, interest has continued to accrue on my account. 

Violation of Federal Protections These actions may violate federal laws and regulations, including : The Higher Education Act of 1965, which governs student loans and protects borrowers rights. 

The Fair Debt Collection Practices Act ( FDCPA ), which prohibits unfair debt practices. 

The Truth in Lending Act ( TILA ), which ensures accurate loan terms disclosure. 

Lack of Transparency [ XXXX XXXX XXXX ] has not provided adequate documentation or a clear explanation for the improper interest charges, leaving me without a resolution. 

Requested Resolution : I respectfully request the following : Immediate Refund of Improperly Charged Interest : Refund XXXX charged to my account.

Review of Loan Account : Conduct a full review of my account to ensure no additional improper charges. 

Detailed Explanation : Provide a written explanation of the interest charges and their origin. 

Preventative Measures : Ensure corrective actions to prevent similar issues for other borrowers. 

Conclusion : I believe Nelnet 's actions violate federal regulations and borrower protections. If this matter is not resolved promptly, I will pursue legal action and explore other avenues to ensure compliance with the SAVE Plan and federal guidelines. 

Thank you for your attention to this matter. Please contact me if further information is needed. 

Sincerely, XXXX XXXX XXXX Loan Account Number : XXXX

Company response to consumer: Closed with explanation