Consumer complaint received 2025-11-14 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.
State: OH

Complaint narrative:
Subject : Urgent Complaint Regarding Misrepresentation by Nelnet Leading to Loss of XXXX XXXX Eligibility and Unaffordable Monthly Payment I am submitting this formal complaint regarding the handling of my federal student loans by my loan servicer, Nelnet, which has resulted in severe financial harm, misinformation, and the loss of my XXXX XXXX XXXX. 

Over the past several XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, and XXXX have been in regular communication with Nelnet representatives regarding both my own federal student loans and my Parent XXXX loans taken for my son. These calls were made specifically to ensure that I fully understood the XXXX repayment plan and the rules around Parent XXXX repayment, consolidation, and eligibility. 

On XX/XX/XXXX, I participated in XXXX calls with Nelnet representatives, with my son present. During these calls : We were explicitly told that I could consolidate the XXXX Parent XXXX loans without affecting the XXXX Plan on my personal loans. 

We were told that consolidating the XXXX loans would allow me to give my son access to make payments. 

We were told that the consolidated Parent XXXX loans would remain separate and would not interfere with my XXXX enrollment on my personal loans. 

At no time was I informedor even cautionedthat consolidating any Parent XXXX loans would cause the new consolidated loan to become ineligible for XXXX and would remove me from the plan entirely. 

Based on the information provided by Nelnet, I proceeded with the consolidation. 

Today, I was notified that I have been removed from the XXXX Plan, and that the consolidated loansXXXX and personal loanshave been grouped together with a new monthly payment of approximately {$1900.00}, due within 45 days. This is a catastrophic financial burden and completely unaffordable. I was given no warning, no explanation, and no opportunity to reverse the action. I was further told by Nelnet that they are sorry but unable to correct the situation, despite the fact that the instruction I followed came directly from their representatives and the calls were recorded. 

This is misrepresentation, servicer error, and a violation of the borrower protection standards set by the Department of Education. 

I am requesting the following corrective actions : Immediate review of the recorded XX/XX/XXXX calls, during which I was clearly misinformed about the effect of consolidation on XXXX eligibility. 

Restoration of my original repayment structure, including reinstatement of my XXXX XXXX for my personal federal loans. 

Administrative forbearance or an account hold to prevent delinquency while this issue is being reviewed. 

Written confirmation of next steps and corrective actions taken. 

Because this error directly resulted from the guidance of Nelnet representatives, the burden of correction should not fall on me. This situation is causing severe financial hardship to my family and is entirely avoidable if Nelnet reviews the calls and corrects the misrepresentation. 

I appreciate your urgent attention to this matter. 

Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation