Consumer complaint received 2025-12-31 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: KS

Complaint narrative:
The matter concerns the following : The original federal student loan in question was fully paid on XX/XX/XXXX. I received confirmation of its satisfied status on XX/XX/XXXX. 
Recently, I was notified that the same loan has been reinstated under the administration of Nelnet, a servicer with whom I have never had any prior account or contractual relationship. 
This reinstatement appears to be in direct conflict with my payment history and records. It has caused me significant distress and raises concerns about inaccurate record-keeping, improper account handling, and potential violations of my rights under federal loan servicing regulations. 

To date, I have attempted to resolve this matter by contacting both Nelnet and XXXX XXXX XXXX multiple times, speaking with multiple representatives of both entities, who have acknowledged that this appears to be an error. Both Nelnet and XXXX have confirmed that I show a {$0.00} balance on my loans, and neither has been able to explain the sudden balance on the loan in question. Despite these efforts, the issue remains unresolved. 

I respectfully request that your office : 1. Conduct a full investigation into the reinstatement of this loan ; 2. Require both Nelnet and XXXX XXXX XXXX to provide documentation justifying their actions and account records, including justification for why my loans with a {$0.00} balance were ever transferred to Nelnet after being paid in full, and why, nearly four years later, Nelnet shows a balance on a loan the U.S. Department of Education states are Paid In Full ; 3. Ensure correction of any erroneous reinstatement or reporting related to my student loan history and require Nelnet to clear my account of the {$2600.00} " post transfer adjustment, '' including the unjustified {$330.00} in interest ; and 4. Confirm in writing to all relevant agencies that my loan remains in paid in full/closed status, consistent with my records and any balance should be adjusted to reflect this.

Legal Basis for Complaint : Under the Higher Education Act of 1965 ( 20 U.S.C. 1082 & 1087a et seq. ), the Department of Education has a fiduciary duty to maintain accurate loan records and ensure proper servicing of federally guaranteed student loans. Improper reinstatement of a loan already satisfied violates this statutory obligation.

The Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ) prohibits the furnishing of inaccurate information by loan servicers and requires correction of any false or misleading loan status reporting to consumer reporting agencies.

The Truth in Lending Act ( 15 U.S.C. 1601 et seq. ) provides protections against unfair or deceptive loan servicing practices, including the assessment of unauthorized interest charges after a debt has been satisfied.

Case law has consistently affirmed the borrowers right to rely on final payoff documentation and protection against improper debt reinstatement. In XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ), the court underscored the liability of entities that report inaccurate or misleading account statuses. Similarly, in XXXX v. XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ), the court emphasized that loan servicers must adhere strictly to federal law in handling student loan accounts, and deviations that cause borrower harm may be actionable. 

Enclosed are copies of U.S. Department of Education documents showing the loans being paid in full, and that I have satisfied my obligations with no additional payments required, MyStudentData document printed from XXXX website showing Nelnet received Paid In Full loans with no mention of the {$2600.00} " post transfer adjustment '' assertion claimed by Nelnet, numerous documents from Nelnet showing conflicting balances of the loan in question with notes, documentation from XXXX  XXXX  XXXX  showing the correct {$0.00} balance with notes, other supporting documents, and correspondence letters with Nelnet ( blaming the reinstatement on the U.S. Department of Education as a " post transfer adjustment '' which XXXX  XXXX  XXXX  doesn't show anywhere ) with notes including documentation that Nelnet was NEVER my loan servicer before my loans were paid off. 

I assert that this reinstatement is improper, unjustified, and legally unsupportable. I respectfully request your offices urgent attention to prevent further harm to my credit, financial standing, and statutory rights.

Company response to consumer: Closed with explanation