Consumer complaint received 2025-03-07 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: PA

Complaint narrative:
On XX/XX/XXXX I logged into my Nelnet account. At that current time, I was on the XXXX plan in a forbearance with 0 % interest. My recertification date was was XX/XX/XXXX. In lieu of this recertification date coming close, and me recently being unemployed and my income dropping significantly, I submitted the recertification application as well as mine and my wife 's income documentation. This was submitted on XX/XX/XXXX. 

After I submitted this application and documentation, on XX/XX/XXXX Nelnet sent me a letter to my account inbox stating that my XXXX plan recertification date has been automatically changed. This is what the letter stated, " As a result of a court action affecting income driven repayment, Nelnet at the direction of the XXXX XXXX XXXX, has changed the date by which you need to recertify your current IDR plan to XX/XX/XXXX. This change will have no impact on your current loan repayment status or your current monthly payment amount. For instance, this means if you are currently in a forbearance, this change does not affect your forbearance. Based upon this change to your IDR plan recertification date, you will not need to recertify your IDR plan prior to XX/XX/XXXX. You should submit your recertification information to Nelnet at least 30 days prior to your new recertification date of XX/XX/XXXX. Nelnet will send you a reminder prior to this date to ensure documentation is submitted on time. You may also visit XXXX and provide consent for auto-recertification of your IDR plan if you are eligible. By doing so, your XXXX plan may be recertified automatically on your IDR plan recertification date. '' Please note the letter above was not sent to me until after I already submitted my recertification on XX/XX/XXXX. So, I had no idea the recertification date was going to be automatically pushed without me submitting any documentation. 

After receiving the letter mentioned above, on XX/XX/XXXX I received another letter from Nelnet saying my loans were put into a different forbearance for up to 60 days and interest will being accruing. Here is what the letter stated, " Your student loans are in a forbearance as of XX/XX/XXXX. 
We recently received your income-driven repayment ( XXXX ) application, but since a federal court issued an injunction preventing the XXXX XXXX XXXX XXXX XXXXXXXX ) from operating the Saving on a Valuable Education ( XXXX ) Plan and other XXXX plans, XXXX application processing is taking longer than normal. 
Due to these delays your XXXX application is in a pending status and Nelnet is putting your account into a forbearance for up to 60 days. 

You can find more information at studentaid.gov/saveaction. 

What does this mean for me? 
While you are in this forbearance no payment is required on your account, but interest will accrue on your outstanding principal balance. 
You will receive credit toward IDR forgiveness and XXXX XXXX XXXX XXXX ( XXXX ) for the time covered by this forbearance. 
If you made or make a payment during the time you are in the forbearance, the amounts paid will go toward satisfying any outstanding interest first and then your existing principal balance. 
The forbearance period will be up to 60 days from the date your XXXX application was received. '' Today ( XX/XX/XXXX ) I reviewed my Nelnet account and see I am being charged interest daily on my loans. Since XX/XX/XXXX, until today ( XX/XX/XXXX ) I have accrued {$130.00} in interest and this is accruing daily. I did not request to be put into a different forbearance nor did I approve this action. All I did was submit my recertification application as requested on my Nelnet account. 

This is unconscionable that I am being put into a different forbearance for up to 60 days for no reason at all. I called Nelet today ( XX/XX/XXXX ) and requested my application from XX/XX/XXXX be cancelled and all the interest from XX/XX/XXXX to present to reimbursed to me. I was told they can not reimburse the accrued interest. I was told all they can do is cancel the current recertification application and put me back on the previous SAVE plan forbearance that I was on prior to XX/XX/XXXX with 0 % interest. I was also informed by the Nelnet agent named XXXX, that cancelling recertification application, will take up to XXXX weeks. In this time I will still be accruing interest daily. 

I am requesting action be taken against Nelet for them not informing me not to submit my recertification application for the XXXX plan. Instead they showed the date on my loans, on my account. By completing the recertification I am now being penalized interest daily until Nelnet officially cancels the recertification application they are processing. This is wrong in so many ways. All I was doing was completing the correct information required of me and instead Nelet penalized me by putting me into a forbearance I never approved. Just for the record, my total interest accrued prior to XX/XX/XXXX, prior to submitting the recertification documentation, was {$340.00} and was at 0 %. As of writing this ( XX/XX/XXXX ) my accrued interest is {$470.00} at a rate of 4.375 % on XXXX different loans. What Nelnet is doing with my loans and changing forbearances is illegal and I want all the interest accrued from XX/XX/XXXX until the application is cancelled, returned back to me and my accrued interest be back to {$340.00}. I can and will provide this agency the exact date the recertification application is cancelled and I am put back onto the 0 % forbearance, as well as the total interest accrued from XX/XX/XXXX to the date it is officially cancelled. 

In summary, I DID NOT request to be moved to a different forbearance for up to 60 days. I DID NOT request my application to be put on hold. I DID NOT approve any change in my XXXX plan application and change in interest. I DID NOT approve any interest to be accrued.

Company response to consumer: Closed with explanation