Consumer complaint received 2026-02-10 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: CA

Complaint narrative:
I am submitting this complaint regarding Nelnets servicing of my federal student loans. Nelnet has acknowledged administrative and communication failures but refuses to provide written documentation, reference numbers, or corrective action. Their explanations are inconsistent, unsupported by documentation, and contradict prior written communications I received. 

I am enrolled in the PAYE ( Pay As You Earn ) repayment plan and was completing my required annual income verification. I was not applying to change repayment plans and did not apply for or consent to enrollment in the SAVE plan. 

During this process, Nelnet placed my loans into administrative forbearance and repeatedly informed me in writing that my loans would be placed at 0 % interest while my application was being processed. I was also informed that time spent in this forbearance would not count toward my XXXX PAYE repayment period. 

Because interest was stated to be 0 % and payments made during this period would not count toward my repayment timeline, it made no financial or repayment sense to continue making payments while I was kept in forbearance. I relied on Nelnets written communications and waited to resume payments once my account was properly processed and returned to repayment. 

Despite this, Nelnet later accrued more than {$10000.00} in interest during this same period, without notice, while continuing to keep my loans in forbearance. 

On XX/XX/XXXX, I received written correspondence from Nelnet stating that I did not need to recertify my income until XX/XX/XXXX. Despite this notice, Nelnet placed my loans into forced forbearance, prevented me from continuing to make payments, and continued to request additional documentation, which I provided in full. 

I received multiple written communications from Nelnet stating that my loans would remain at 0 % interest while Nelnet processed my application, that payments made during this period would not count toward my XXXX PAYE repayment timeline, and that I would be contacted once processing was complete. 

In XX/XX/XXXX, Nelnet confirmed they had received all required documentation and stated they would process my information and contact me once completed. I received no further communication after this point. 

I received no written notice from Nelnet or from the government ending my 0 % interest status, explaining a change in forbearance classification, notifying me that I was being placed into any SAVE-related forbearance, or disclosing that interest would begin accruing. 

At a later date, I discovered that over {$10000.00} in interest had accrued on my account. When I contacted Nelnet, representatives stated that I was correctly placed into SAVE-related forbearance and that not being enrolled in the SAVE plan does not matter. I was told this placement was correct despite my objections. When I referenced public government announcements regarding SAVE protections, I was told I was incorrect, without any written explanation or citation.

I am not enrolled in the SAVE repayment plan, never applied for SAVE, and was never notified by Nelnet or by the government that my loans would be treated as part of SAVE-related forbearance resulting in interest accrual. 

When asked why I never received notice that my interest status had changed, Nelnet stated that the government, not Nelnet, was responsible for providing that notice. However, I received no notice from the government, and all prior communications regarding my loan status came directly from Nelnet. Nelnet can not identify when or how notice was allegedly sent, can not provide copies of any notice, refuses to provide a reference number or case ID, and admitted failures in communication but denies responsibility for correcting the outcome. 

Nelnets actions resulted in forced forbearance without borrower request, prevention from making payments, reliance on written statements that payments would not count and interest would be 0 %, unauthorized accrual of over {$10000.00} in interest, no notice of interest or status changes from any party, no documentation supporting SAVE classification, no explanation for prolonged inactivity after XX/XX/XXXX, and shifting responsibility between Nelnet and the government. 

I respectfully request that Nelnet be required to provide written clarification of my repayment plan and forbearance classification, provide written justification for any SAVE-related designation, reverse all interest accrued during administrative forbearance including the more than {$10000.00} improperly added to my account, restore my account to the correct PAYE status without penalty, provide written confirmation of all corrections made to my account, and ensure future administrative processing does not result in forced forbearance or borrower harm. 

Nelnet is the servicer responsible for maintaining my account accurately and communicating material changes. Their failure to provide notice, documentation, or accountability has resulted in substantial financial harm and ongoing uncertainty. I am requesting CFPB assistance to ensure compliance with federal student loan servicing standards.

Company response to consumer: Closed with explanation