Consumer complaint received 2025-08-07 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: PA

Complaint narrative:
My student loan servicer, Nelnet, began illegally and retroactively adding interest to my account. I was previously in the SAVE plan, which began an interest freeze in XX/XX/XXXX. At the time of the freeze, I had {$350.00} in interest on my account. After I learned that the interest freeze would end on XX/XX/XXXX, I chose to apply for a new XXXX plan and submitted that application on XX/XX/XXXX. On XX/XX/XXXX, I received a letter from Nelnet indicating that my new XXXX plan would become effective XX/XX/XXXX. On XX/XX/XXXX, I checked my account, and saw that Nelnet had added interest to my account retroactive to XX/XX/XXXX, which was of course prior to me even submitting an application for a new plan. On XX/XX/XXXX, I called Nelnet to ask them to remove this improperly added interest. They agreed that the interest was mistakenly added and agreed to remove it within XXXX days. I checked my account again on XX/XX/XXXX, and they had not removed the improperly added interest. I called Nelnet again, and an automated message confirmed that I was still in the SAVE plan and that interest would not accrue until XX/XX/XXXX. I then spoke to a representative who confirmed interest had been accruing since XX/XX/XXXX, and this person didn't understand why this was wrong. That person then connected me to a supervisor, who after reviewing Nelnet 's own XX/XX/XXXX letter confirming my new plan would not be effective until XX/XX/XXXX, agreed that the interest had mistakenly been accruing. That supervisor then advised that the improperly added interest would be removed within XXXX days. The supervisor refused to give me confirmation of this in writing. I then wrote an email to Nelnet asking for confirmation they would remove this improperly added interest, and their only response was that I should call them to discuss. Given that the first representative blatantly lied to me about the interest being removed, the second supervisor 's refusal to put anything in writing, and Nelnet 's refusal to substantively answer my email, I have no confidence whatsoever that Nelnet will actually remove the illegally added interest. I can't keep wasting my time calling in to explain the same issue, for Nelnet 's representatives to agree with me and promise it will be removed, only for them to do nothing. Overall, Nelnet 's own letter confirms that my new plan doesn't take effect until XX/XX/XXXX, so I'm still in the SAVE plan until then. Therefore, interest should only have started accruing on XX/XX/XXXX, and all interest added from XX/XX/XXXX to XX/XX/XXXX was illegally added. My statements show that {$15.00} in interest accrues daily. Multiplying that number by XXXX ( the number of days from XX/XX/XXXX to XX/XX/XXXX ), {$350.00} in interest has been improperly added to my account. I have to XXXX I'm not the only person this has happened to. I wish Nelnet had honored their word from XX/XX/XXXX so I didn't have to take even more time addressing this issue, but here I am. It's inexcusable for them to add interest while I'm still in the XXXX plan and before the interest freeze ended, and it's even more egregious for them to retroactively add interest for the time before I even submitted an application for a new XXXX plan.

Company response to consumer: Closed with explanation