Consumer complaint received 2025-02-11 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: KS

Complaint narrative:
To Whom It May Concern, I am writing to formally file a complaint against Nelnet regarding their refusal to return {$10000.00} that I am owed. PLEASE SEE ALL EXHIBITS ATTACHED. Description of each exhibit at end. 

The total loan amount for the XXXX academic year was {$20000.00}. On XX/XX/XXXX, Nelnet disbursed {$10000.00} of this loan to the XXXX XXXX XXXX on my behalf for the Fall XXXX semester. On XX/XX/XXXX, I paid off that full Fall XXXX loan to Nelnet. Specifically, including interest, I paid {$10000.00} to Nelnet toward the Fall XXXX loan. However, on XX/XX/XXXX, I unenrolled from the XXXX XXXX XXXX  and as a result, the university canceled the Fall XXXX loan from Nelnet on XX/XX/XXXX. The funds returned to Nelnet on or about XX/XX/XXXX. 

The {$10000.00} loan disbursed on XX/XX/XXXX, was for the Fall XXXX semester. The remaining {$10000.00} of the full {$20000.00} loan was scheduled for disbursement in XX/XX/XXXX for the XXXX XXXX semester. Since I WAS NO LONGER ENROLLED after XX/XX/XXXX, Nelnet DID NOT disburse the Spring XXXX loan. Despite this, in an answer to my complaint, Nelnet claimed that the full {$20000.00} loan was disbursed on my behalf, including the XXXX XXXX portion. Nelnet claims the {$10000.00} I paid goes toward the XXXX XXXX loan. However, that can not be true if I am unenrolled and no XXXX XXXX loan was disbursed to the XXXX XXXX XXXX. Nelnets claim is incorrect, as I was no longer enrolled, and the XXXX XXXX XXXX  has confirmed in writing that the XXXX XXXX loan was never disbursed. The other half of that total {$20000.00} loan, the XXXX XXXX portion, would never be disbursed because I UNENROLLED from the university. 

Nelnet has not refunded the full {$10000.00} I paid toward the canceled loan. The only refund I have received was a {$110.00} interest refund, which Nelnet processed on XX/XX/XXXX. Thus, Nelnet still has {$10000.00} that is rightfully owed to me. Despite submitting a formal complaint on XX/XX/XXXX, and providing proof of the canceled loan, and providing proof that I am unenrolled, Nelnet has failed to return the {$10000.00} I paid. I have also made numerous attempts to resolve this issue through phone calls, but each time I was given no clear answers or a resolution. During my multiple calls, I was transferred between representatives, received conflicting information, and was not given a timely resolution. 

I respectfully request that Nelnet issue the full refund of {$10000.00} to the original payment method used on XX/XX/XXXX. I also ask that Nelnet take immediate steps to ensure this matter is resolved, as their actions constitute an Unfair and Deceptive Practice under applicable consumer protection laws. Nelnet 's failure to return the funds and their misleading statements about the disbursed loan amount have caused undue hardship. 
Thank you for your attention to this matter, and I look forward to a prompt resolution. However, if my money is not returned to me, then I will be seeking legal action. 

Exhibits : XXXX XXXX from XXXX XXXX XXXX website showing the XXXX {$20000.00} loan was cancelled. 
XXXX XXXX from Nelnet XXXX showing I paid the Fall XXXX loan on XX/XX/XXXX. 
C- Screenshot from my bank account website showing I paid {$10000.00} to Nelnet XXXX 
D- Formal letter from the XXXX XXXX XXXX XXXXXXXX the Fall XXXX loan was cancelled, and stating the XXXX XXXX loan was NEVER disbursed. 
E- Screenshot from my bank account website showing Nelnet only refunded me the interest from my {$10000.00} payment. The interest was {$110.00}. 

XXXX of Events : XX/XX/XXXX Nelnet disbursed {$10000.00} for Fall XXXX. 
XX/XX/XXXX Paid off the full {$10000.00} loan. 
XX/XX/XXXX XXXX from XXXX XXXX XXXX 
XX/XX/XXXX XXXX XXXX XXXX canceled the loan. 
XX/XX/XXXX Received interest refund of {$110.00}. 

OTHER THAN THE {$10000.00} LOAN FOR THE FALL XXXX SEMESTER, WHICH WAS CANCELLED, NO OTHER LOAN WAS DISBURSED TO THE XXXX XXXX XXXX BECAUSE I AM UNENROLLED.

Company response to consumer: Closed with explanation