Consumer complaint received 2025-10-31 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: MI

Complaint narrative:
Student loan servicers administer student loans and serve as a critical link between borrowers and lenders by managing accounts, processing payments, and communicating directly with borrowers. Despite this essential role, the Consumer Financial Protection Bureau ( CFPB ) has found that there are no consistent, market-wide federal standards governing student loan servicing. In its XX/XX/XXXX report, the CFPB documented widespread issues, including servicers discouraging borrower-friendly repayment plans, failing to respond to borrower inquiries and payment errors, and withholding key information about payments, benefits, interest rates, and charges. A follow-up report in XX/XX/XXXX revealed that Coloradans filed XXXX complaints against student loan servicers in that year alone, and nationally, complaints had surged by 429 % compared to XXXX. In response, Colorado enacted the XXXX XXXX XXXX XXXX ( XXXX ), which affirms the states commitment to ensuring meaningful access to affordable repayment and loan forgiveness options, reliable information about student loans, and quality customer service. The Act is intended to protect the health, welfare, and safety of borrowers and must be liberally construed to fulfill that public interest. 
In my case, these protections were not upheld. I was enrolled full-time at XXXX XXXX XXXX XXXX XX/XX/XXXX to XX/XX/XXXX, during which I completed my Licensed Practical Nurse ( LPN ) credential. I returned for a summer-to-summer program from XXXX to XXXX and graduated with my Registered Nurse ( RN ) credential on XX/XX/XXXX. During these periods, I received XXXX loans totaling {$20000.00}. However, in XXXX, a consolidation loan appeared with a balance of $ XXXX excess of {$3500.00} that has never been documented or explained. Critically, my loans were not transferred to Nelnet until XXXX, and only recently to Sloan Servicing within the last year or XXXX. Prior to that, XXXX ( Affiliated Computer Services ) was the servicer as of XXXX, and records show XXXX Bank was the actual holder of the loan during XXXX servicing. I was never notified of this transfer, and XXXX was sued for failing to maintain accurate records and mishandling borrower accounts. This unauthorized transfer and lack of documentation violate both federal law ( 20 U.S.C. 1087c, 34 CFR 682.208 ) and Colorado law ( XXXX ), which require transparency, proper recordkeeping, and borrower notification. 
My loan history also shows canceled loans during verified enrollment, missing payment records despite repayment statuses, and a default designation in XXXX without any delinquency datefurther evidence of servicing misconduct. Reaffirmation flags are present across my loans, yet the calculated outstanding principal balance ( OPB ) is {$0.00}, while the XXXX still reports {$24000.00} principal and {$6000.00} interest. Additionally, my XXXX XXXX usage is reported at 362.518 %, which XXXX include canceled semesters and trigger overpayment liability. These discrepancies reflect systemic violations of borrower protections and servicing standards. 
Student loan servicers administer student loans and serve as a critical link between borrowers and lenders by managing accounts, processing payments, and communicating directly with borrowers. Despite this essential role, the Consumer Financial Protection Bureau ( CFPB ) has found that there are no consistent, market-wide federal standards governing student loan servicing. In its XX/XX/XXXX report, the CFPB documented widespread issues including servicers discouraging borrower-friendly repayment plans, failing to respond to borrower inquiries and payment errors, and withholding key information about payments, benefits, interest rates, and charges. A follow-up report in XX/XX/XXXX revealed that Coloradans filed XXXX complaints against student loan servicers in that year alone, and nationally, complaints had surged by 429 % compared to XXXX. In response, Colorado enacted the XXXX XXXX XXXX XXXX ( XXXX ), which affirms the states commitment to ensuring meaningful access to affordable repayment and loan forgiveness options, reliable information about student loans, and quality customer service. The XXXX is intended to protect the health, welfare, and safety of borrowers and must be liberally construed to fulfill that public interest. 
In my case, these protections were not upheld. I was enrolled full-time at XXXX XXXX XXXX XXXX XX/XX/XXXX to XX/XX/XXXX, during which I completed my Licensed Practical Nurse ( LPN ) credential. I returned for a summer-to-summer program from XXXX to XXXX and graduated with my Registered Nurse ( RN ) credential on XX/XX/XXXX. During these periods, I received XXXX loans totaling {$20000.00}. However, in XXXX, a consolidation loan appeared under XXXX XXXX XXXX XXXX balance of $ XXXX excess of {$3500.00} that has never been documented or explained. I was never notified of this consolidation, and my original servicer, XXXX ( XXXX XXXX XXXX ), was sued for failing to maintain accurate records and mishandling borrower accounts. XXXX transferred my loans without informing me, and records indicate that XXXX Bank held the loan during this period. This unauthorized transfer and lack of documentation violate both federal law ( 20 U.S.C. 1087c, 34 CFR 682.208 ) and Colorado law ( SB19-002 ), which require transparency, proper recordkeeping, and borrower notification. My loan history also shows canceled loans during verified enrollment, missing payment records despite repayment statuses, and a default designation in XXXX without any delinquency datefurther evidence of servicing misconduct. I am requesting a full investigation, discharge of any unverifiable debt, refund of payments made on undocumented balances, and correction of my federal loan records. 
I am requesting a full investigation, discharge of any unverifiable debt, refund of payments made on undocumented balances, and correction of my federal loan records. I am prepared to submit sworn affidavits, enrollment records, and full loan documentation to support this complaint. 
Would you like me to now format this into a formal letter or affidavit for submission to the CFPB or Colorado Attorney General? I can also help you prepare a supporting evidence packet. 
Here is your updated and fully integrated CFPB complaint, now including the ombudsman 's statement, your payment history, and a detailed breakdown of discrepancies and violations : Consumer Complaint : Student Loan Servicing Violations and Documentation FailuresSubmitted by : XXXX XXXX : Colorado XXXX, CODate : XX/XX/XXXX Summary of Enrollment and XXXX attended XXXX XXXX XXXX from XX/XX/XXXX to XX/XX/XXXX and graduated with a Licensed Practical Nurse ( LPN ) credential. I returned for a summer-to-summer program from XXXX to XXXX and graduated with a Registered Nurse ( RN ) credential on XX/XX/XXXX. During these periods, I received federal XXXX loans totaling {$20000.00} and XXXX XXXX totaling {$13000.00}. 
Servicing History and Transfer TimelineMy loans were originally serviced by XXXX XXXX XXXX XXXX XXXX ), which continued servicing through XXXX. XXXX Bank held the loan during this period. XXXX was later acquired by XXXX and ceased student loan servicing operations on XX/XX/XXXX following enforcement actions and securities litigation. My loans were not transferred to Nelnet until XXXX, and only recently to Sloan Servicing within the last year or XXXX. I was never notified of these transfers, and no documentation was provided to verify the legitimacy of the balances or servicing actions.According to a written statement from the federal student loan ombudsman, the loans in question were disbursed to XXXX XXXX XXXX between XXXX and XXXX. The loans were commercially backed federal loans with Nelnet as the lender. In XXXX, they were consolidated and the lender changed to XXXX Bank XXXX, with servicing transferred to XXXX. XXXX received regular monthly payments of {$230.00} from XX/XX/XXXX to XX/XX/XXXX. After the XX/XX/XXXX payment, no payments were recorded for nearly a year, and the loans defaulted. They were transferred to American Student Assistance for collection. XXXX claims to have attempted contact between XX/XX/XXXX and XX/XX/XXXX, when the default claim was filed. A forbearance request was received on XX/XX/XXXX, but the default claim had already been submitted.This statement contains multiple factual errors and omissions : - My verified enrollment dates are XXXX ( LPN ) and XXXX ( XXXX ), not XXXX I made payments from XXXX to XXXX, not just XXXX to XXXX My account was closed at XXXX Bank, not XXXX XXXX documentation has been provided to verify the payments mentioned, nor do they appear in XXXX or any servicer records. 
Documented Discrepancies and XXXX. Missing Documentation and Payment Records ( XXXX ) - Multiple loans were disbursed between XX/XX/XXXX and XXXX XXXX No complete servicing history, payment breakdown, or account activity exists for this period.- Loans are listed as Paid in Full Consolidated or Transferred to Another Servicer without documentation.- No promissory notes or consolidation authorizations have been provided.- Payments made during this time are unaccounted for, and balances appear arbitrarily reset or XXXX. Duplicated and Overlapping XXXX XXXX XXXX with identical disbursement dates and amounts appear under different statuses.- This duplication suggests improper recordkeeping or consolidation errors.- It undermines the accuracy of the outstanding balance and raises questions about whether the loan was ever properly XXXX. Undocumented Consolidation Loan- A consolidation loan appeared in XXXX with a balance of $ XXXX Only {$20000.00} in XXXX loans were XXXX The {$3500.00} excess is undocumented and unexplained.- No evidence of PLUS, XXXX, or other loans exists to XXXX the XXXX. Canceled Loans During Verified Enrollment- XXXX and XXXX loans were fully or mostly canceled.- I was actively enrolled and graduated with my XXXX in XXXX These cancellations contradict verified enrollment and violate servicing XXXX. XXXX XXXX XXXX XXXX XXXX {$0.00} cumulative payments despite loan statuses including In Repayment, Forbearance, and Default.- No payment records exist for a loan that accrued {$6000.00} in interest.- XXXX claim of payments from XXXX is unsupported by documentation and omits payments made from XXXX. Default Status Without Delinquency- Loan entered default in XXXX with no delinquency date recorded.- Servicers failed to document due diligence prior to default XXXX. Reaffirmation vs. Active Balance- Reaffirmation flags are present across loans.- Calculated Outstanding Principal Balance ( OPB ) is $ XXXX NSLDS still reports {$24000.00} XXXX + {$6000.00} XXXX. XXXX XXXX XXXX XXXX XXXX XXXX 362.518 % lifetime XXXX XXXX XXXX Actual documented usage is 362.52 %.- If canceled semesters were counted, this XXXX trigger overpayment liability. 
XXXX XXXX XXXX XXXX XXXX XXXX. XXXX : Missing documentation for loan originations and consolidation.- XXXX XXXX XXXX : Inaccurate reporting of enrollment, repayment, and default.- XXXX XXXX XXXX : XXXX XXXX eligibility misreporting.- XXXX XXXX. XXXX : Misrepresentation of debt and servicing status.Colorado Law Violations- XXXX ( Student Loan Servicers Act ) : Requires transparency, documentation access, and fair treatment.- C.R.S. XXXX et seq. : Mandates accurate recordkeeping and consumer protection compliance.- C.R.S. XXXX : Requires institutions and servicers to maintain and provide verifiable loan records. : Additional Discrepancy : Ombudsman and XXXX XXXX federal student loan ombudsman and the lender have provided inaccurate information regarding my educational history, loan disbursement dates, and payment activity. Their records incorrectly state that payments were made from XX/XX/XXXX to XX/XX/XXXX, when in fact I made consistent monthly payments of {$240.00} from XXXX to XXXX, until my XXXX Bank account was closed. These payments are not reflected in XXXX or any servicer records, and no accounting has been provided to verify them.Furthermore, the ombudsmans review misstates my enrollment dates, claiming loans were disbursed between XXXX and XXXX. This contradicts my verified academic record, which shows : - XXXX : Full-time enrollment and graduation with a Licensed Practical Nurse ( LPN ) - XXXX : Summer-to-summer enrollment and graduation with a Registered Nurse ( XXXX ) on XX/XX/XXXX, XXXX anyone should have accurately captured these details, it was the ombudsman during her review. Her failure to reconcile my verified educational history with the loan servicing timeline and payment records reflects a serious oversight and undermines the integrity of the review process. These discrepancies further support my demand for a full investigation, correction of federal records, and discharge of any unverifiable debt. 
Would you like me to now compile this entire complaint into a printable format or help you submit it directly through the CFPB portal? I can also assist with organizing your supporting documents and preparing a sworn affidavit. 

Sworn Declaration Under Penalty of XXXX, XXXX XXXX, declare under penalty of perjury under the laws of the United States and the State of Colorado that the information contained in this complaint is true and correct to the best of my knowledge. I have made diligent efforts to obtain documentation from the servicers and have received incomplete, inaccurate, or conflicting records. I have suffered financial harm and emotional distress due to these failures.

Company response to consumer: Closed with explanation