Consumer complaint received 2025-09-30 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: WA

Complaint narrative:
Subject : Formal Complaint Regarding Loan Amortization and Servicing Errors by Nelnet I am writing to formally lodge a complaint regarding the mishandling of my student loan repayment terms following the transfer of servicing from Great Lakes to Nelnet. 

I graduated in XXXX  and consolidated my student loans under an agreement that clearly outlined a 25-year repayment term. At the time of consolidation my monthly payments were {$200.00} per month, with nominal increases scheduled every two years. This structure was confirmed in the Master Promissory Note ( MPN ), which states that the consolidated loans would be amortized over 25 years. 

However, after Nelnet assumed servicing responsibilities, they unilaterally changed the amortization schedule to 10 years. This change was made without my consent and directly contradicts the terms outlined in the MPN. I have repeatedly requested a copy of the original amortization scheduledocumentation that the Department of Education was obligated to provide at the time of signingbut Nelnet has refused to furnish it. 

Nelnets justification for the change is that each individual loan within the consolidation package is under {$30000.00}, and therefore subject to a 10-year repayment term. This interpretation is incorrect and misleading. The MPN refers to loans in the plural when discussing amortization, indicating that the total consolidated amountnot individual loan balancesdetermines the repayment term. 

I have contacted Nelnet numerous times to correct this error and filed an official complaint with XXXX XXXX XXXX. All XXXX did was turn it over to Nelnet for them to respond. Nelnet 's response was inadequate, merely restating my concerns without offering basis or support in their amortization of the loan, nor any resolution. Their only proposed solution is for me to reconsolidate and apply for a new income-driven repayment plan. I do not wish to extend my repayment period further, nor should I be required to do so given the original agreement. 

Additionally, the MPN stipulates that no payment should exceed three times the previous payment. My monthly payment increased from {$330.00} to $ XXXX {$550.00} jumpacross four loans, which is nearly 5 times the original payment for those loans ( the 4 loans in question had a total payment due of less than {$100.00} per month, and now have a payment due of {$550.00} per month. This is a clear violation of the agreement, and my concerns regarding this issue have also been ignored. 

According to Nelnets current amortization schedule, several more loans are set to come due under the incorrect 10-year term. This ongoing mismanagement is not only unjust but may be affecting many other borrowers similarly.

I respectfully request that this matter be investigated and that my original 25-year amortization schedule be reinstated in accordance with the terms of the MPN. I also request a copy of the original amortization schedule and a formal response addressing each of the issues raised in this complaint. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation