Consumer complaint received 2025-11-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Nelnet, Inc.
State: SC

Complaint narrative:
Nelnet reported a 30/60-day late payment on my student loan, but the delinquency occurred due to a servicing error and inadequate notification on their part. I am requesting that the late payment mark be removed because the reporting is inaccurate under the Fair Credit Reporting Act and federal student loan servicing requirements. 

on XX/XX/year>, my Nelnet auto-debit payment was returned. I did receive an email from Nelnet stating that the payment had been returned, but the email did NOT state that autopay was being turned off, nor did it warn me that future payments would NOT be drafted, due to repeated failure. that I would become delinquent, or that I needed to take immediate manual action to avoid late payment. 

Nelnet posted a document about the autopay cancellation inside my online inbox, but I did not receive any email or direct notice specifically telling me that autopay was disabled or that I had a critical new message. The only email I received simply said my payment was returned and instructed me to log in to view documents, without explaining the urgency or that autopay was discontinued. 

Under federal servicing requirements, servicers must provide clear, direct notification to borrowers when autopay is cancelled or when repayment terms change. Posting a document inside an online account, without notifying the borrower of the content or significance, does not meet the regulatory standard for adequate notice. 

Because Nelnet did not properly notify me that autopay had been shut off, I had no reason to know that future payments would not be made automatically. As soon as I discovered the issue, I immediately corrected my account and brought it current. The delinquency occurred solely because Nelnet failed to provide adequate notice of autopay cancellation and delinquency risk.

I immediatly opened a dispute to have this issue corrected swith Nelnet and they refused due to not honoring " good faith '' corrections. Even knowing i had absolutly no idea that for the following months auto pay was not drafting like i had thought as the money, WAS in my account.

Therefore, the late payment reporting is the result of servicer error, and is inaccurate and unfairly damaging my credit. I am requesting that the 30-day and 60-day late marks be removed from my credit report with all credit bureaus, as allowed under the Fair Credit Reporting Act when a servicer fails to meet federal communication requirements.

I also have screenshots from my credit monitoring app taken before the forbearance was applied, which show that the months Nelnet later marked as late ( such as XX/XX/year> ) were not reported as late at the time. This means the delinquency was not present on my report until after Nelnet placed me into administrative forbearance and then an approved forbearance. 

This is important because Nelnet told me that forbearance would bring my account current, and they confirmed in writing that administrative forbearance may have been applied specifically to correct any past due status. If the XXXX payment had actually been late before forbearance, it would have already shown on my credit report at that time. My screenshots prove that it did not. 

The fact that the late payment mark only appeared after forbearance was approved indicates that Nelnet misreported my account status retroactively. This directly contradicts federal servicing requirements, which mandate that loans in forbearance must be reported as current, and no delinquency may be added during or for months covered by forbearance.

I also have documentation from XX/XX/year>, showing that Nelnet reported my loan as current for the months they later marked as XXXX  days late. In this screenshot, the monthly payment grid for XXXX  shows green checkmarks ( current ) from XXXX through XXXX, and no late marks whatsoever. Despite this, the account summary on the same screen incorrectly showed a Current Payment Status : XXXX  Days Late and Worst Payment Status : 90119 Days Late. 

This internal inconsistency proves that XXXX systems were misreporting my account status. A loan can not simultaneously be reported as current in the month-by-month grid while being classified as XXXX  days late. This contradiction demonstrates clear inaccuracies in XXXX credit reporting and supports that the late marks were added after the forbearance period began, not because payments were actually missed. 

Because the account was already in approved forbearance from XX/XX/XXXX through XX/XX/XXXX, XXXX because the account history itself shows those months as currentany later reporting of delinquency is inaccurate under the Fair Credit Reporting Act and must be corrected I am submitting these screenshots as additional evidence that XXXX reporting is inaccurate, improperly applied, and must be corrected. 

I have documentation showing : The email I received did not notify me that autopay was turned off The autopay cancellation document was posted without clear communication I corrected the account immediately once I became aware Nelnet has refused to correct the reporting despite their communication failure I am requesting CFPB assistance in having this inaccurate late payment removed. 

Thank you.

Company response to consumer: Closed with explanation