Consumer complaint received 2025-01-09 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Bankruptcy
Company: Nelnet, Inc.
State: VA

Complaint narrative:
enrolled at the XXXX XXXX XXXX XXXX XX/XX/XXXX and the financial advisors at the school suggested loans to which I was unaware of the terms. Upon receiving the terms via mail, I had already been attending the school since XX/XX/XXXX and funds/terms were not disclosed/disbursed until XX/XX/XXXX and XX/XX/XXXX. Upon reviewing terms that it was indeed a private loan with unreasonable interest rates and repayment terms, I immediately returned the excess funds of XXXX from XXXX XXXX and paid the balance due of just {$5500.00} to the school. I then was forced to withdraw from the school because they claimed they could not secure any alternative funding options for me than XXXX XXXX. ( The school had a direct program with XXXX XXXX and they placed me with them knowing it was not in my best interest as I would be repaying over $ XXXX to XXXX XXXX upon achieving my XXXX XXXX in XXXX XXXX. The projected income after graduation would not support loans of that size ). 
When it was brought to light in public about the countless lawsuits the XXXX XXXX was facing, until being forced to close because of allegations of misleading students in their finances, I immediately filed for a XXXX XXXX XXXX with the XXXX XXXX XXXX XXXX to have all the loans discharged as I was extremely misled. I had also discovered none of the credits from the XXXX XXXX were transferrable that I had paid for as well in addition to being misled in my enrollment decisions. 
It has since been a waiting game to which I have been selecting the Deferment option ( I am enrolled in school online while working full-time since XXXX working toward completing my XXXX ), with Firstmark, to avoid making any further payments to them as this loan should be dismissed. I was informed this week that I have exhausted my Deferment option even though I am still enrolled full-time in courses and payment will be due in XXXX that is triple what I had been paying. In reviewing the updated terms with Firstmark, I owe 34 % MORE on the loan ( over {$8600.00}, when I made countless payments since XXXX and only borrowed {$5500.00} from XXXX XXXX than when it was dispersed in XXXX. This is a result of interest rates increasing and it being deferred during XXXX but they still accrued interest as well, while awaiting my XXXX  XXXX XXXX to be reviewed that was submitted back in XXXX. I had been making consistent payments on this loan and have not had one late payment while the loan was not in deferment. 
I am requesting the loan be discharged in full at the current payoff amount of {$8600.00} growing by the day per the numerous settlements that have been reached on all Federal loans and numerous private loans from this school. Specifically, on XX/XX/XXXX, a settlement was filed for XXXXXXXX XXXX XXXX. I attached a copy for reference. Since then, there was no issue having my Federal Loans with XXXX be XXXX and filed as closed. The ongoing issue is XXXX XXXX XXXX XXXX that was not even their loan to begin with and was transferred after the school closed. When I have asked them- I am told they have no record of the school closing or fraudulent financial practices. In addition, this loan was to be included in my bankruptcy that was filed and XXXX XXXX was notified of in XXXX and I provided this information as well to First Mark to which they declined as well.

Company response to consumer: Closed with explanation