Consumer complaint received 2025-06-18 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: IA

Complaint narrative:
XX/XX/XXXX, the Department of Education had provided a letter that the college that I attended. 

Subject : Student Loan Discharge Based on Borrower Defense Evidence The XXXXXXXX XXXX XXXX XXXX XXXX XXXX ) has determined that the federal student loan ( XXXX ) you received to attend XXXX University ( XXXX ), now known as the XXXX XXXX XXXX XXXX XXXX ( XXXX ) on or after XX/XX/XXXX, through XX/XX/XXXX, are eligible for a full discharge. This means the remaining balance on the eligible loan ( s ) will be forgiven. You do not have to make any more payments on the loan ( s ).

Your loan ( s ) will be discharged as part of an ED action regarding loans made to students attending XXXX between XX/XX/XXXX, through XX/XX/XXXX. This action follows EDs finding that XXXX made pervasive and widespread substantial misrepresentations that borrowers relied on to their detriment and/or violated state consumer protection laws. 
These misrepresentations are related to licensure eligibility for certain careers, program costs and financial aid, how long a degree would take to obtain, and the transferability of credits. Because of the serious and widespread nature of the misconduct by XXXX, XXXX has determined that it is appropriate to discharge the loans made to students who attended XXXX. This approach eliminates the need for an individual consideration of each borrowers claim.

You also may receive a refund for prior payments made to XXXX on the loans that are being XXXX. Your servicer will let you know if you are eligible for a refund, which would be mailed to you or sent electronically. Please check your online account with your loan servicer to ensure your address is correct ( as well as any banking information that is in your account ) so you can receive any refund. Otherwise, you do not have to take any further action to receive your discharge. Your credit report will also be updated to reflect this discharge when it is complete. 

It will take XXXX some time to process your discharge ; however, you will not need to make additional payments on the loans you received to attend XXXX during the requisite period while your discharge is pending. Until XXXX completes its work, your eligible loan ( s ) from XXXX will remain paused in forbearance/stopped collections, and we will not ask you to resume making payments. If your loan ( s ) are in default, we will not attempt to collect on the loan ( s ) being XXXX. EDs determination is that the loans described above are not enforceable and that you are no longer obligated to repay them. As a result, XXXX will not seek to enforce them, and any future attempts to collect on or enforce your repayment obligations are without legal basis. Furthermore, because the loans described above and your repayment obligations are not enforceable, you are entitled to, and will receive, a discharge. 

On XX/XX/XXXX, XXXX had shown that the above letter indicating that all of my XXXX loans were XXXX, and states that my loan service providers were notified. I left it alone for obviously reasons of instruction because the process will take some time. However, in XXXX, I noticed on my credit report that the XXXX had reported my discharge, and the consolidated loans through NelNet was still on my credit report, which gave me pause to consider following up. When I noticed my credit score change, I went onto my studentaid account and started to deep dive further. I discovered on their website the consolidated loan paperwork from XXXX, I was unaware that my Aidvantage loans were consolidated through NelNet, I had originally thought that XXXX sold to NelNet my loans. However, I was paying the loans on time ( even paid extra ) through NelNet. first off my wrong address, and XXXX college loans with account numbers and the amounts were on them. I saved this paperwork after my discovery, compared the amounts that were XXXX, and called studentaid for further information. I wanted information at that time the of the process. XXXX provided me the information that they have to contact the original loan service provider for them to unconsolidate all loans that were consolidated, and release that information to the current loan service provider, to which it will take time. I accepted that answer, and asked them about the forbearance that NelNet never did. They told me to ask for it since they haven't already done so like they should have automatically. I called NelNet and informed them of that information. They refused and told me that XXXX 'has n't given them permission ' yet. I continue to pay loans to NelNet still because of worry that I have 2 non-discharge loans to pay through NelNet and do not want the interest to rise. XXXX - current, I gather more information, ask studentaid for clarification, and try again multiple times with NelNet and my request. XX/XX/XXXX rolls around, I am continuing my payments with NelNet, and getting frustrated as well. I contact studentaid again for further clarification. They told me according to their records that I have on my account shows only the 2 non-discharge loans that have been unconsolidated from XXXX and that information was released to NelNet. They advised me to call XXXX for clarification. I call XXXX, and it was confirmed that they unconsolidated my loans, and their system shows them the 2 non-discharge loans as well, and my account actually shows a negative balance. The rep told me that I needed to request an Administrative forbearance, I told that person I've tried multiple times and NelNet refuses. The rep asked me why they refused because they are supposed to automatically do that when I received the original letter from XXXX. I told the rep of Aidvantage that I was told that interest would increase especially on the 2 non-discharge loans that I have remaining. The rep said no it doesn't because it is 'under certain circumstances due to a discharge. ' I did ask the XXXX rep if they could clarify the dates of the discharge, and the rep couldn't exactly give me a specific date, however, in a roundabout way stated it's been a while, probably because my loans is not through them. I immediately called studentaid to clarify that information, and that rep said the same thing, 'under certain circumstances due to discharge, if there are non-discharged loans remaining, no interest is accumulated until process of discharge is completed. ' I emailed NelNet again, disclosing all of this information, showing evidence, even sending the paperwork from the start of consolidation with the date it was completed along with wrong address. Requested again for them to update their system with the 2 non-discharged loans and put my discharge loans into Administrative Forbearance. I get a response, which is generic, that I've received on more than once correspondence that they are waiting on XXXX to release the information. I've even called them and told them, and they have the same answer, 'it takes time ' and 'we don't have permission from XXXX yet. ' From all of the reps from studentaid and XXXX that I've asked my questions for clarifications, I have come to the conclusion that NelNet is not adhering to what XXXX has requested, nor my requests, and are trying to put blame on XXXX and any previous loan service I may have had previously. I have not once asked about 'where 's my refund ' all I've asked was to allow me to finish paying my 2 non-discharged loans which they have those amounts and loan account numbers, and to put XXXX XXXX loans into forbearance. I understand the whole process will take time, however, when XXXX and XXXX has already confirmed to me that my updated account information has been updated and sent to NelNet, and NelNet is not doing their due diligence I have now resorted to having to file a complaint for not complying with XXXX.

Company response to consumer: Closed with explanation