Consumer complaint received 2025-11-13 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Nelnet, Inc.
State: VA

Complaint narrative:
In 2007, I took out XXXX private education loans totaling {$12000.00}. Since that time, I have paid {$20000.00} in interest alone, yet the principal has barely decreased, and my current payoff amount is still approximately {$19000.00}. Despite making payments for over 19 years, the structure of the loan causes nearly all payments to be applied to interest rather than principal. This appears to be a predatory lending structure, as the loan balance has effectively increased over time despite consistent repayment efforts. I am requesting a review of the interest practices, amortization schedule, and fee structure. 

I am filing a complaint regarding a private student loan originally taken out in XX/XX/year> in XXXX disbursements totaling {$12000.00}. 

Over the 19 years since origination, this loan has behaved like a predatory product. Despite consistent payments for nearly XXXX decades, my principal has barely decreased, and the majority of my payments have gone entirely to interest. 

Here is the timeline : XX/XX/year> XXXX disbursement of {$7000.00}. 

XX/XX/year> Second disbursement of {$5000.00}. 

XXXX Regular monthly payments made. Despite this, the loan balance did not meaningfully decrease. 

Current Statement ( attached ) shows the following : Total interest paid to date : {$20000.00} Total principal borrowed : {$12000.00} Current payoff amount : approx. {$19000.00} Estimated total interest accrual listed : {$25000.00} This means that after paying more than {$20000.00} in interest, the remaining balance is still higher than the original loan, which is consistent with predatory amortization structures. 

I have contacted the servicer over the years, but no meaningful options for principal reduction, interest adjustment, or loan modification were offered. 

This structure prevented any significant principal reduction despite long-term repayment, which is why I am filing this complaint. 

CONSUMER HARM : This loan has caused long-term financial harm. Despite paying more than {$20000.00} in interest over nearly XXXX decades, my balance is still higher than the original principal. This has materially impacted my ability to save, invest, and manage essential expenses while working full-time in a medical profession. The structure of this loan prevented meaningful principal reduction and created a cycle of debt that I have been unable to exit despite consistent payments. 


PREDATORY STRUCTURE : The amortization structure appears designed so that payments disproportionately serviced interest and prevented principal reduction. After 19 years, more than {$20000.00} was applied to interest with almost no principal impact. A loan with this pattern behaves like a negative-amortization product, which aligns with known predatory lending models common in private student loans issued in the XXXX. This pattern suggests the loan was structured in a way that made successful repayment nearly impossible. 

SERVICER FAILURE : When I contacted the servicer in the past to understand why the balance was not decreasing, no viable options were offered. I was not provided with transparent explanations, alternative repayment options, or interest-rate adjustments. As a result, the servicer contributed to the prolonged financial harm.

Company response to consumer: Closed with explanation