Consumer complaint received 2025-06-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: Nelnet, Inc.
State: TX

Complaint narrative:
CFPB Complaint Statement I am filing this complaint against the XXXX XXXX XXXX XXXX, XXXX, and Nelnet due to unlawful and deceptive handling of my federal student loans. The following outlines what occurred : Summary of Events : Over the course of my repayment period, my federal student loans were repeatedly reconsolidated and reassigned to different loan servicers ( including XXXX and Nelnet ) without my knowledge, signed authorization, or informed consent. Each time, my loan balances, loan IDs, and repayment timelines were altered or reset without explanation or proper documentation. 

These unauthorized actions : Created confusion and inconsistency across my loan records Disrupted my active Borrowers Defense to Repayment ( BDTR ) application Resulted in inaccurate and conflicting credit reports Potentially undermined or reset progress toward loan forgiveness programs Violations of Federal Law : 1. Unauthorized Loan Reconsolidation Loans were consolidated into new loans without my permission or signed application, violating : Truth in Lending Act ( TILA ) Higher Education Act ( HEA ), 20 U.S.C. 1098g 34 C.F.R. 685.220 Consolidation requires borrower application and consent 2. Failure to Notify of Servicer Transfers and Term Changes Transfers between Nelnet and XXXX occurred without timely notice or full explanation, violating : 34 C.F.R. 682.208 Borrowers must be informed of loan servicing changes in writing 3. Obstruction of Borrowers Defense Rights These unauthorized changes occurred during my Borrowers Defense application process, directly interfering with my right to federal loan discharge under : 34 C.F.R. 685.206 ( e ) Potentially violating due process rights under the Administrative Procedure Act ( APA ) Inaccurate Credit Reporting I received official credit reports showing loan deletions. Yet, reinserted or altered loan entries continue to appear across servicers, violating : FCRA, 15 U.S.C. 1681s-2 ( a ) Furnishers of credit must report accurate and authorized information Impact of These Actions : Severe emotional and financial distress Damaged credit profile Confusion about repayment status and loan balances Loss of trust in the student loan system Potential loss of time toward forgiveness under IDR or PSLF programs Requested Resolution : 1. A full federal investigation into these unauthorized consolidations and servicer transfers 2. Written documentation of any alleged authorization for these changes 3. Immediate protection of my Borrowers Defense application from further disruption 4. Correction or suppression of all inaccurate loan entries in my credit reports 5. Full discharge ( forgiveness ) of my federal student loan debt based on these repeated violations, unauthorized consolidations, and obstruction of my right to loan relief The pattern of unauthorized loan reconsolidation, failure to notify, interference with legal discharge rights, and inaccurate credit reporting demonstrates a breakdown of legal compliance by XXXX, Nelnet, and the XXXX XXXX XXXX XXXX. These actions have materially harmed me and prevented me from receiving the fair treatment and legal remedies guaranteed to federal student loan borrowers under law. 

I am therefore requesting full federal student loan forgiveness as a remedy for the unlawful and damaging conduct that has occurred. 

I have attached photos to this complaint to show how many times at minimum the loans were reconsolidated and reformed without my consent or permission.

Company response to consumer: Closed with explanation