Consumer complaint received 2025-03-07 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: LA

Complaint narrative:
I wanted to start making payments as soon as I graduated since I was hoping to benefit from PSLF and currently my income is low. To avoid the grace period on my loan, I was told I had to submit a loan consolidation application.

On the application, it requested that I specify what payment plan I would like. I completed the application on XX/XX/XXXX and selected IBR as my payment plan.

I received a letter date on XX/XX/XXXX from XXXX confirming that the application for consolidation was processed including my IBR plan.

When I login to StudentAid, it states that the application was created and submitted on XX/XX/XXXX and that the application review was completed on XX/XX/XXXX. It shows that my application was completed and that your loan servicer has completed their review of your application. 

On XX/XX/XXXX, I received an email from Nelnet stating Your Direct Consolidation Loan has been completed AND confirmed loan disbursement on XX/XX/XXXX. 

I logged into Nelnet on XX/XX/XXXX to view my account and it shows IBR with my first payment being due in XX/XX/XXXX since an administrative forbearance was placed on my account. 

I called Nelnet and spoke to an account manager ( XXXX, Employee ID : XXXX ) on XX/XX/XXXX to request a remove of forbearance on my account. When the employee did this, it changed my plan to standard repayment rather than to a IBR plan. Due to the hold on processing all IDR plans I was no longer able to change back to an IBR.

I want to be very clear that I NEVER provided consent for a change on my repayment plan. To resolve this issue, I requested that the case be escalated to a supervisor and I have never received further correspondence from Nelnet.

I have tried calling Student Aid several times since and they said that my options are to File a Feedback case and escalate to the office of the Ombudsman OR follow-up with Nelnet.

I submitted two feedback cases on the student aid website on XX/XX/XXXX ( Feedback Case # XXXX and Feedback Case # XXXX ). I called Student Aid to follow up on XX/XX/XXXX and was transferred to someone from the Office of the Ombudsman. She was not helpful and states the IDR application was never processed and requested further information. I sent her correspondence I received on XX/XX/XXXX with no response. 

I checked the status of the case on XX/XX/XXXX and saw that both feedback cases were closed with no resolution or correspondence from Student Aid, Office of the Ombudsman, or Nelnet.

I have spent HOURS and have tried every possible way to have my case reviewed and resolved but no one is able to help me. My right as a student borrower are being violated and Nelnet has violated the Terms as a loan servicer. My plan was changed without consent, I have not received correspondence from Nelnet/student aid, Nelnet has not correctly changed my account to reflect IBR approval . 

On XX/XX/XXXX at XXXX XXXX EST, I received two back-back emails from Nelnet stating that my account was placed in forbearance. One email says You will not receive credit toward IDR forgiveness and Public Service Loan Forgiveness ( PSLF ) for the month ( s ) covered by the forbearance. AND the other email states You will receive credit toward IDR forgiveness and Public Service Loan Forgiveness ( PSLF ) for the time covered by this forbearance. This is conflicting information that has also contributed to severe anxiety, distress and confusion.

I am requesting the following : 1. Nelnet change my plan to IBR which was approved based on the documentation that I provided to them 2. Nelnet process 3 payments that count towards PSLF

Company response to consumer: Closed with explanation