Consumer complaint received 2025-11-04 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.

Complaint narrative:
I submitted an official in-school deferment request to Nelnet on XX/XX/XXXX, after enrolling in a full-time, two-year masters program at an international university for the XXXX academic year. On XX/XX/XXXX, I received confirmation that my deferment had been approved and applied. 

This came after Nelnet repeatedly pushed back on my application, citing the lack of an XXXX  ( school code ), despite my consistent communication that my school does not have XXXX, as it is an international institution. I ultimately uploaded a certificate of enrollment, since previous documents ( including the official registrars signed and stamped letters and the enrollment verification portal screenshot ), were being dismissed without proper explanation.

Shortly after receiving the approval notice, however, I began receiving notices stating that repayment would begin in XX/XX/XXXX. When I contacted Nelnet for clarification on why they reversed the original approval, they falsely claimed that my application was incomplete or that my school was ineligible due to not participating in U.S. federal aid programs.

My school is a legitimate international institution, and my deferment application was complete and certified by an authorized school official ( the registrar ). Under 34 CFR 685.204 and the Higher Education Act of XXXX, full-time and part-time students attending foreign institutions are legally entitled to in-school deferment. Servicers are required to manually process these deferments with certified enrollment documentation regardless of XXXX status. 

Further evidence of the approval can be seen in Nelnets system behavior. I have consistently received quarterly loan statements from Nelnet on or around the XXXX day of every third month, including XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and so forth. However, on XX/XX/XXXX ( the exact date I received the deferment approval email ), Nelnet issued an off-cycle quarterly statement, which is not consistent with their standard pattern. This deviation indicates a change in loan status that likely reflected the approved deferment. Strangely, the actual approval letter from that day appears to have been removed or omitted from my account, and only the off-cycle summary remains further raising concerns about selective documentation and nontransparency. 

Despite providing legal references and complete documentation, I have received repeated generic responses from Nelnet. They have not offered a lawful explanation for the reversal, nor have they addressed their duty under federal regulations to manually process deferments for international institutions. 

My attempts to escalate this have been met with scripted replies and no substantive resolution. My questions about why my deferment was reversed, and why federal rules are not being followed, have been ignored. 

This obstruction is causing mental and financial distress, as I am being asked to repay loans while I am actively enrolled full-time and eligible for deferment. I believe this may constitute a violation of the Federal Equal Credit Opportunity Act, as this treatment raises serious concerns of discrimination based on race, national origin, and school location especially given the broader pattern of excluding or disregarding borrowers attending XXXX  or non-U.S. institutions. 

I respectfully request that this issue be escalated immediately and that Nelnet be compelled to : Honor the original deferment approval dated XX/XX/XXXX. 
Retroactively apply the deferment for the current and future enrollment periods. 
Cease repayment demands while I remain enrolled and eligible. 

This is not a request for goodwill or forbearance. It is a formal demand that Nelnet comply with federal law and fulfill their obligations as a loan servicer. I trust the CFPB will take this matter seriously and help ensure my rights as a borrower are protected.

Company response to consumer: Closed with explanation