Consumer complaint received 2025-03-01 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: CA

Complaint narrative:
I am writing to formally dispute the validity of my federal student loans serviced by Nelnet. I contend that Nelnets systemic failuresincluding breaches of its contractual obligations under the Master Promissory Note ( MPN ), improper communications regarding income-driven repayment ( IDR ) plan eligibility, and violations of federal privacy statutes ( such as FERPA and the Privacy Act ) have directly caused significant financial harm and prevented me from receiving legally mandated loan forgiveness.

Legal and Contractual Violations 1. Breach of Contract and MPN : Nelnets repeated failure to provide accurate, timely, and transparent information regarding repayment optionsspecifically, its omission of critical details about my IDR plan eligibility as required under 34 CFR 685.209constitutes a breach of the contractual obligations defined in my Master Promissory Note. These omissions violate federal requirements under the Truth in Lending Act ( 15 U.S.C. 1601 ) and the Higher Education Act ( 20 U.S.C. 1087e ). 2. Privacy Violations : The mishandling of my personal
ly identifiable information and educational records directly contravenes the Family Educational Rights and Privacy Act ( FERPA, 20 U.S.C. 1232g ) and the Privacy Act of 1974 ( 5 U.S.C. 552a ). Such violations have undermined my statutory rights and directly contributed to my financial and credit harm.

3. Unfair and Deceptive Practices : Nelnets practicesranging from misallocating payments and accruing unwarranted interest to inaccurately reporting loan status to credit bureausappear to constitute unfair, deceptive, or abusive practices ( UDAAP, 12 U.S.C. 5531 ). Recent enforcement actions, including state attorney general settlements against Nelnet for similar violations, underscore that such conduct is both widespread and unlawful.

Impact of Violations Financial Harm : The improper processing of my account has led to unnecessary interest accrual and fees, significantly inflating my loan balance.

Emotional Distress and Credit Damage : The ongoing lack of clear communication and inaccurate credit reporting has caused undue stress and adversely affected my credit score, limiting my access to further financial services.

Request for Relief In light of the documented statutory violations and supported by recent regulatory enforcement actions, I respectfully request that you : 1. Immediately Discharge All Federal Student Loans : Cancel all loans serviced by Nelnet on my account, pursuant to my rights under borrower defense to repayment and other applicable federal statutes.

2. Conduct a Thorough Compliance Investigation : Initiat
e an immediate review of Nelnets servicing practices, particularly regarding IDR communications and privacy safeguards.

3. Correct Credit Reporting Errors : Ensure that all inaccuracies stemming from these servicer failures are promptly removed from my credit reports.

Conclusion I have relied on the representations made by Nelnet when I entered into my student loan obligations, and I have suffered significant financial and emotional harm as a result of their noncompliance. I request a prompt review of my case and immediate corrective action. Please confirm receipt of this request and provide an estimated timeline for resolution. I am prepared to furnish any additional documentation or testimony necessary to support my claims. 
Thank you for your prompt attention to this matter.

Company response to consumer: Closed with explanation