Consumer complaint received 2025-05-19 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: GA

Complaint narrative:
To Whom It May Concern, I am submitting this complaint regarding Nelnets handling of my student loan payments. I recently made a full and final student loan payment with interest on XX/XX/year>, in an effort to close my loan account and stop all further interest charges. Before making this payment, I contacted Nelnet a week prior, to ask which payment method would immediately zero out my account and prevent any additional interest. 

A Nelnet representative informed me that paying by debit card over the telephone was the best option and that the account would be updated immediately, with no additional interest accruing. I expressed concerns about daily interest and was assured that this method would prevent those charges. 

I also confirmed that the debit card payment option is not available through the online portal and must be completed by telephone. To prepare, I contacted my banks fraud and customer service departments to temporarily increase my daily spending limit. After the limit was raised, I called Nelnet and completed the debit card payment by telephone on XX/XX/year>. I received confirmation over the telephone via the Nelnet rep. and via email the same day that the payment was approved and processed. 

Despite this, as of XX/XX/year>, my Nelnet account still displays a balance and continues to accrue interest. When I followed up with Nelnet, I was told that debit card payments take XXXX business days to post, directly contradicting what I was told earlier and what is publicly stated on Nelnets own website, which claims that payments are typically posted within 2 business days.

I believe I have overpaid interest on this account not only due to this most recent delay, but also because previous scheduled online payments regularly took more than 2 business days to post. This delay resulted in additional interest charges I should not have been responsible for. I believe these practices should be formally investigated, and that Nelnet should be required to update their payment systems to reflect real-time posting and eliminate the overcharging of borrowers. 

This delay and conflicting information has caused me to pay unnecessary additional interest, which I believe is unfair, deceptive, and potentially fraudulent. I request the following : 1. Immediate correction of my account status to reflect a paid-in-full loan with no further interest accrual.

2. Reversal or refund of all interest charges that accrued during the five-day payment posting delay and any previous excessive delays. 

3. Written confirmation from Nelnet stating that my loan is paid in full.

4. An investigation into Nelnets payment posting practices to ensure they comply with applicable consumer protection laws, including the Truth in Lending Act and the Consumer Financial Protection Act. 

I appreciate your assistance in resolving this matter fairly and promptly. 

Sincerely, XXXX XXXX XXXX Nelnet Account XXXX

Company response to consumer: Closed with explanation