Consumer complaint received 2025-03-16 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: MA

Complaint narrative:
Greetings, My name is XXXX XXXX, and I am a XXXX  I went to XXXX XXXX  for my XXXX XXXX, transferred to a XXXX XXXX for my XXXX and license in education. I did this while working full time as a XXXX XXXX and XXXX XXXX All of this time, my mom was battling XXXX ( during COVID, she even had a XXXX XXXX XXXX XXXX. I have been a XXXX for four years now, and in XXXX it is required to obtain your XXXX XXXX within the first five years. I just finished my XXXX  in the XXXXXXXX XXXX XXXXXXXX. 

The only way I could pay for my college was through Federal Student Loans. I was grateful to be approved. 

Like so many American students who dream of a better tomorrow, I took out loans under the impression that Income-Driven-Repayment and Public Service Loan Forgiveness would be around . Even speaking with Nelnet Loan Servicers last summer, I asked -- would the IDR and PSLF be around even if XXXX XXXX XXXX lose to XXXX XXXX XXXX They said try not to worry, because historically -- through various presidencies in recent decades, those programs remained in place. 

I have been prepared for income-driven repayments and planned my career in education around the Public Service Loan Forgiveness program . Under the new administration, both programs have been placed on hold. Nelnet has only been able to post headers at the top of the website to alert people. 

My income driven repayments were planned around XXXX dollars, and without IDR, they are around {$700.00}. I will be homeless if forced to pay that. Even if I defer, I will accrue interest, which in my opinion -- is just wrong. 

Furthermore, on XX/XX/XXXX, it was made public that XXXX XXXX witch-hunt group, the non-congressionally approved " XXXX, '' gained unauthorized access to my personal and financial data, which was stored by Nelnet and the Department of Education .

My personal data is not some abstract thing -- it's my social security number, my tax returns ( as they are linked to Financial Aid ), my marital status, my family members and their personal information, and more. I am taking hit after hit from the Federal Loan program.

I ask you to please investigate the violations of these laws : 1. The Family Educational Rights and Privacy Act ( FERPA ) Violation : FERPA is a federal law that protects the privacy of student education records. If the group accessed student loan information, including personal data related to federal student loans, without authorization, they could have violated FERPA.

Relevance : FERPA prohibits the unauthorized disclosure of personally identifiable information from education records without the consent of the student or the student 's family ( in the case of minors ). Since student loan information is often linked to educational records, this could be a violation.

2. The Gramm-Leach-Bliley Act ( GLBA ) Violation : The GLBA requires financial institutions ( such as student loan servicers like Nelnet ) to protect the privacy of consumers ' financial information. If XXXX  or any other entity improperly accessed your financial data ( i.e., your student loan information ), it could be in violation of the GLBA. 
Relevance : Nelnet, being a financial institution handling student loans, is bound by GLBA to protect customer financial data. Unauthorized access would constitute a breach of this law. 

XXXX. The Privacy Act of XXXX Violation : The Privacy Act governs how federal agencies, such as the Department of Education, handle personal data. If XXXX accessed your student loan information without authorization from federal databases, they could be in violation of the Privacy Act. 
Relevance : The law requires federal agencies to safeguard the personal data they collect. Unauthorized access to your data by a third party could constitute a breach of this act.

4. The Computer Fraud and Abuse Act ( CFAA ) Violation : The XXXX is a federal law that criminalizes unauthorized access to computer systems and data. If XXXX used any form of hacking or unauthorized access to gain entry to Nelnet or Department of Education systems to access student loan information, this law could apply. 
Relevance : Unauthorized access to a system ( such as Nelnets platform ) or stealing sensitive information via computer networks is illegal under the XXXX. 

XXXX. The Identity Theft and Assumption Deterrence Act Violation : This law makes it a federal crime to knowingly and intentionally use someone elses personal information to commit fraud or other crimes. If XXXX used or intended to use your student loan information for fraudulent purposes, this law could apply. 
Relevance : The unauthorized access to your private financial and personal data could potentially be linked to identity theft or fraudulent activity. 

XXXX. State-Level Data Protection Laws Violation : Many states have enacted their own data protection laws ( e.g., XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX ) that require entities to protect personal data and notify individuals in the event of a breach. If DOGEs actions led to a breach of these laws, they could be subject to state-level penalties. 
Relevance : If your information was compromised and the breach was not reported as required by state laws, it could result in additional violations.

7. The Federal Trade Commission Act ( FTC Act ) Violation : Under the FTC Act, it is illegal for businesses to engage in unfair or deceptive practices. If XXXX 's actions involved unauthorized access to your information and they were conducting business in a way that was deceptive or harmful to consumers, they could be violating this law. 
Relevance : The FTC is responsible for enforcing laws related to consumer protection. Unauthorized access to your personal data could be considered unfair or deceptive business practices under this act. 

I am requesting that, in light of the severity of this breach and the violation of my privacy, the Department of Education fully forgive or pay in full all of my student loans dating back to XXXX. I believe that this action is necessary to make up for the harm caused by this unauthorized access to my personal information, as I should not be held responsible for any misuse of data that occurred as a result of this breach. 
I have already been on the phone with Nelnet, contacted the FERPA office of the Department of Education, and asked my creditors to lift any decrease in score based on my student loans.

FYI -- every borrower who is forced into going to deferment will have their credit score drop due to increase in interest. This increase of interest is unjust. How can you expect the working class American ( who has student loans ) to pay anything other than income-driven repayments? Furthermore, how can Federal Loans ( DOE/Nelnet ) charge interest on deferments coming from a national crisis? 

Given the nature of the situation, I urge the Consumer Financial Protection Bureau to investigate the matter and ensure that appropriate steps are taken to both protect my private data and remedy the financial consequences of this incident. Also, I call on the CFPB to investigate the interest from deferment and its impact on credit score.

I trust that the Bureau will hold the responsible parties accountable and assist in the resolution of this issue. I am happy to provide any additional information or documentation necessary to support my complaint. 

As stated previously, I'm a XXXX I live by small means. I want to get married one day. I want to have a family. Please investigate the injustice that is happening to the American people who just want a fair chance. 

Thank you for your time and attention to this serious matter. I look forward to hearing back from you soon. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation