Consumer complaint received 2026-02-10 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Nelnet, Inc.
State: MA

Complaint narrative:
I am filing this complaint against Nelnet regarding misleading servicing guidance, improper handling of hardship relief, and refusal to review credit reporting damage that occurred during a documented period of medical incapacity. 

I suffered a severe cervical XXXX injury involving fractures to my XXXX and XXXX. I was hospitalized and, following discharge, placed in a rigid neck brace and ordered to remain on extended bed rest. During this period, I was physically unable to perform basic daily activities independently, including driving, working, or managing financial obligations. I relied heavily on friends and family members for essential care. 

Because of this medical incapacity, I was unable to manage my student loan payments or consistently receive and respond to account communications and mail. This resulted in missed payments that were later reported as delinquent to credit bureaus, causing approximately a XXXX point drop in my credit score and contributing to housing instability and financial hardship. 

After recovering enough to address my financial situation, I contacted Nelnet to request hardship assistance. Nelnet eventually placed my loans into forbearance, acknowledging my financial hardship. However, Nelnet refused to retroactively apply hardship forbearance or review the credit reporting impact that occurred during my medically documented incapacity period. 

More concerning, Nelnet representatives informed me that they are not allowed to request goodwill credit reporting adjustments or reconsider credit reporting unless the borrower was either actively enrolled in school or serving in the military. I have a recorded call documenting this statement. 

I believe this information is misleading and inconsistent with federal student loan servicing requirements and consumer protection laws. Under the Dodd-Frank Act ( 12 U.S.C. 5531 and 5536 ), student loan servicers are prohibited from engaging in unfair, deceptive, or abusive acts or practices, including misrepresenting borrower relief options. 

Additionally, federal regulation 34 CFR 685.205 allows servicers to grant discretionary forbearance when borrowers are experiencing financial hardship or other acceptable circumstances, which reasonably includes documented medical incapacity. This regulation does not limit hardship consideration exclusively to military service or school enrollment. 

Furthermore, under the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ), furnishers of credit information must report accurate information and conduct reasonable investigations into disputed reporting. Nelnet has refused to conduct meaningful review or administrative correction of reporting related to my documented medical incapacity. 

As a result of Nelnets refusal to properly evaluate my hardship circumstances and their provision of misleading information about available relief options, I have suffered significant credit damage and financial instability. 

I am prepared to provide medical documentation confirming my hospitalization, incapacity period, and supporting records, as well as recorded communications with Nelnet representatives. Below is the transcript from a recent call. I will collect the other documents within a reasonable time in consideration to my situation.

Company response to consumer: Closed with explanation