Consumer complaint received 2025-04-15 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account status incorrect
Company: Nelnet, Inc.
State: KY

Complaint narrative:
To Whom It May Concern, On XX/XX/year>, I experienced a significant and devastating drop in my credit scores : from approximately XXXX to XXXX on Experian, and from XXXX to XXXX on TransUnion. As a XXXX individual who has spent my entire adult life building and maintaining strong credit, this sudden decline has been not only financially damaging but also deeply disheartening. 

Prior to these recent Department of Education loan reports, my credit history was overwhelmingly positive, marked by over 99 % of on-time payments with only a few isolated XXXX  days past due occurrences, each of which were accidental and never reflective of an unwillingness to meet my obligations. I have consistently chosen to carry loans and pay extended interest to build and preserve my credit. This recent event has left me feeling utterly defeated, with the prospect of spending the next XXXX years working to rebuild my score seeming nearly insurmountable. 

In the past week, Ive read hundreds, if not thousands of testimonies from others who are enduring the exact same hardship. It is clear that this issue is not the result of individual negligence, but rather the consequence of a systemic breakdown impacting people nationwide. 

Before this change, I had approximately {$96000.00} in available credit card lines, of which only about 2 % was utilized. Now, with my credit scores severely affected, my available credit has been slashed to nearly nothing. As a result, I am currently unable to secure financing for a vehicle, a home, or any other need that depends on a functional credit score. 

The student loans in question were placed in forbearance while I pursued XXXX XXXX ( becoming a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) and during the federal Covid-related pause. During this time, the loans were transferred to Nelnet and fragmented into XXXX separate accounts. Despite my efforts, including submitting paperwork on multiple occasions during the forbearance period and calling and talking to representatives, I was unable to complete the consolidation process or establish a manageable repayment plan. Importantly, these loans remained in forbearance throughout this time. 

Following the credit report changes on XX/XX/XXXX, I was finally able to speak with a representative at Nelnet, who graciously assisted in placing the loans back into forbearance ( after which they had been removed to forbearance without me understanding what was going on ) to allow time for consolidation and payment setup. I want to emphasize that I have never had the intention to avoid repaying any debt I owe or any debt I've ever owed. My long-standing credit record serves as a testament to that commitment. 

To characterize this situation as frustrating would be a gross understatement. The complexity and opacity of the current loan servicing and credit reporting system are overwhelming even to the most diligent and responsible individuals. There is a clear and urgent need for reform. I am incredibly grateful for the opportunity to have received student loans, as they allowed me to pursue an education that would not have been possible otherwise. I did not have familial financial support, and without a degree, I would never have had access to a job that could support repayment or my family entirely. 

However, many of us who have tried to do everything right now find ourselves in crisis. The system, as it stands, is failing the very people it was meant to empower, hardworking individuals striving to better themselves and contribute meaningfully to our country. We need help. 

Sincerely, XXXX XXXX XXXX Additional information for the incorrect & inconsistency in the reporting process that was misleading to all borrowers ( attached document ).

Company response to consumer: Closed with explanation