Consumer complaint received 2025-03-15 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: OH

Complaint narrative:
I am writing to formally file a complaint against Nelnet regarding the handling of my student loan, which has resulted in significant negative effects on my XXXX XXXX, financial standing, and my eligibility for XXXX XXXX XXXX XXXX ( PSLF ) and Income-Driven Repayment ( XXXX ) forgiveness. 

Recently, I received an alert indicating a substantial drop in my credit score due to an increase in my student loan balance and interest. This unexpected increase has now negatively impacted my credit, despite my otherwise excellent financial standing. My debt-to-income ratio is well within acceptable limits, and I have consistently paid my rent, utilities, and credit card bills on time. I am now frustrated and concerned that my credit is ruined due to a series of issues stemming from Nelnets mishandling of my loan account. 

My primary concern is that I did not receive the required and clear communication from Nelnet, particularly regarding the status of my loan repayments. Specifically, I did not receive any notifications when my payments were 75 days past due, as I understand is required. Instead, the only correspondence I received was generic, automated emails that lacked specific details and failed to alert me to the importance of repayment restarting. 

Upon logging into my Nelnet account, I found a single message dated XX/XX/XXXX, which indicated that I was behind on payments, that I had been auto-enrolled in forbearance, and that interest would continue to accrue during this time. My previous loan servicer, Great Lakes, transferred my loan to Nelnet, and while my loans were in forbearance, I was unaware that repayment had restarted. Furthermore, I was completely unaware that I had been auto-placed into forbearance and/or auto-enrolled into an XXXX plan. I feel I should have been notified and asked for my consent before being placed in either of these programs. 

To make matters worse, my forbearance officially began on XX/XX/XXXX, due to : " Your account is in a forbearance because we can not recalculate your monthly payment amount at this time. '' However, I was not informed that interest would continue to accrue during this time, nor that the time spent in forbearance would not count toward my eligibility for Public Service Loan Forgiveness ( PSLF ) or Income-Driven Repayment ( XXXX ) forgiveness. This lack of communication has hindered my ability to manage my loan effectively, and I feel that Nelnet 's failure to provide clear and timely information has put my future loan forgiveness opportunities at risk. 

In addition, Nelnet automatically placed my loan in forbearance, yet I have accrued a total of {$1900.00} in interest. This situation feels fraudulent and predatory, as I was never adequately informed of when my payments were due or that repayment had resumed, despite being told by Nelnet that I had been placed in forbearance. 

I acknowledge my responsibility for repaying my student loan ; however, with the substantial interest added and my being unknowingly placed in forbearance since XX/XX/XXXX, I am now at a loss as to how to navigate this situation. This has only added to an already financially difficult time for me, and I am struggling to manage my loan effectively under these conditions.

Company response to consumer: Closed with explanation