Consumer complaint received 2025-05-03 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Nelnet, Inc.
State: TX

Complaint narrative:
Hello, My name XXXX XXXX XXXX XXXX is I took out ~ {$93000.00} in student loans I had to start paying back around XXXX. I am now down to about {$8200.00}. I took the loans out under the name XXXX XXXX XXXX XXXX  and my maiden name was XXXX XXXX XXXX XXXX XXXX Nelnet had my loans but in XXXX of XXXX XXXX XXXX took them over. I am not sure if that was to service them or if they own them. Nelnet says they dont own them and XXXX XXXX  says Nelnet owns them. I have always paid my payment plus extra. I even paid during the XXXX loan freeze where payments did not have to be made. I still made the minimum and extra. Any extra I paid monthly on my loans has always been dispersed between all the loans evenly- I think I originally had about XXXX loans. I am down to one loan now. Yesterday, XX/XX/XXXX I logged into my account because I felt like my loan amount wasnt going down. It was then I realized my XXXX, XXXX XXXX payments I made, my XXXX payment, and my XXXX payment from XXXX went 100 % to interest, none went to principal. They totaled {$1200.00}. I called XXXX XXXX XXXX from XXXX XXXX originally said it was for the interest that accrued during the Pandemic freeze. I told him no I paid my payments over that time. Then he told me it was when they were in deferment. I told him I had never made a deferment request/filing and that I had always paid my loans. He then tells me that it was because they paid all my overage I would pay monthly to just one loan and this was the interest that had been accruing on the ones that werent getting paid. I told him I never requested they do that and that any extra I had ever paid had always been dispersed evenly between the loans. I had my mom on a three way call with him, as she used to work for XXXX XXXX XXXX XXXX XXXX for XXXX years and was familiar with all the terminology. She told him it was illegal to not disperse the funds evenly between all loans AFTER interest that was accruing was paid. We asked to speak with a supervisor and he would not let me speak with a supervisor. He told me I had to call back if I wanted to speak to one and hung up on me. I called back. Got the same man, XXXX, he told me again he could not give me to a supervisor and that Id just have to call back if I wanted to speak with one. He hung up on me a XXXX time. I called back and got a different man. He told me the same stories listed above and then when I told him they cant apply all my funds to one loan and not disperse them evenly he just kept saying this was the Payment allocation which was what the federal student aid requires. He also would not let me speak with a supervisor stating this was not an escalation issue. 
I was told XXXX different excuses of why 100 % of my loan payment went to interest. I dont feel that even after taking over my loans in XXXX of XXXX they applied all my payment to one loan and didnt pay the other loans I did not accrue {$1200.00} in interest on roughly {$9000.00} in loans with a 3 % interest from XXXX to XXXX. I feel like fraudulent activity is taking place. I also feel if a customer asked to speak with a supervisor that request should be granted. As stated, I have always paid my loans and am well ahead on my payments. I currently dont even have to make a payment till XX/XX/XXXX. One of my loans was a XXXX year loan, yet its nearly paid off and its only been XXXX years. Please, I am asking for assistance in this matter as to concern on my issue. I do not understand why 100 % of any payment would go strictly to interest. The payments in question : XX/XX/XXXX : {$250.00} XX/XX/XXXX : {$250.00} XX/XX/XXXX : {$2.00} ( because I switched banks and was just making sure it worked ) XX/XX/XXXX : {$250.00} XX/XX/XXXX : {$500.00} I also attempted to call Nelnet and they said my loans with them were paid in full. I called the XXXX guaranteed student loan program which apparently changed the name to XXXX and they show no loans open for me. 
I feel like I have done my due diligence, paid my loans back like was intended, and Im being the one punished.

I feel like what they have done is they have noticed Im paying my loans off early and have pushed the interest that should accrue with the remaining amount of my loan to the front. Whatever they are doing I do NOT feel those XXXX through XXXX payments should have went 100 % to interest. 



The loan # remaining on myLoans is : XXXX XXXX XXXX XXXX XXXX XXXX  XXXX Please please please reach out to me.

Company response to consumer: Closed with explanation