Consumer complaint received 2025-08-22 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: FL

Complaint narrative:
I am filing a formal complaint against Nelnet for unlawfully reopening my student loan account that was paid in full and closed over XXXX years ago. This action is based on an unverified and fraudulent claim from a third party, and it constitutes an unfair, deceptive, and abusive practice. 

* * XXXX. Description of the Problem : * * In XX/XX/XXXX, and XX/XX/XXXX my private student loan account with Nelnet ( # [ ] ) was paid in full by a third party. Nelnet processed this payment, closed my account, and sent me an official paid-in-full confirmation letter. I fulfilled my obligation. 

In XX/XX/XXXX, I discovered that Nelnet had * * reopened my account * * and reinstated the original debt, plus accrued interest, for a total of * * {$2400.00} * *. The account status is listed as " XXXX XXXX XXXX. '' * * XXXX. The Fraudulent Basis for Nelnet 's XXXX : * * The third party ( my former partner ) later sought to get their money back. After their own bank rightly refused to process a dispute for a transaction over XXXX years old ( far beyond the XXXX limit ), they * * falsely claimed * * to their own student loan servicer that the payment they made to Nelnet was XXXX for their own loan and was " accidentally '' applied to mine. 

An attorney from that loan servicer then contacted Nelnet. * * Without a court order, without my consent, and without a legitimate bank chargeback, * * Nelnet complied with this external pressure. They manually processed an " XXXX XXXX XXXX, '' effectively * * reversing a settled transaction from years ago * * and stealing the funds from my closed account to give back to the third party. 

* * XXXX. Why This is Wrong and Harmful : * * * * * Breach of XXXX : * * My loan was satisfied. Nelnet 's own letter confirms this. They can not unilaterally cancel a completed contract years later. 
* * * Unfair Practice : * * I am now being charged retroactive interest for a period during which my loan was validly closed. 
* * * Abusive Action : * * Nelnet acted on the word of a third party 's lawyer over mine, the account holder, without a legal basis. 
* * * Credit Damage : * * This wrongful debt has been reported to credit bureaus, severely damaging my credit history and score. 
* * * XXXX of Funds : * * Nelnet took funds that legally belonged to them ( as payment for a debt ) and gave them to a third party. 

* * XXXX. Desired Resolution : * * I demand that the CFPB compel Nelnet to immediately : * Reverse the " Administrative Payment Refund '' and permanently close my account with a {$0.00} balance. 
* Remove all interest, fees, and negative credit reports associated with this illegal action. 
* Provide me with a new paid-in-full letter and written confirmation that my credit has been cleared of this error. 
* Investigate and explain the internal failure that allowed this to happen. 

I have already attempted to resolve this directly with Nelnet to no avail. I have attached proof of the paid-in-full status and the current account showing the fraudulent refund. 

Thank you for your assistance.

Company response to consumer: Closed with explanation