Date Received: 2024-01-18
Issue: Attempts to collect debt not owed
Subissue: Debt was paid
Consumer Complaint: I received a letter from Nelnet asking me to pay a debt for XXXX due to late account being late but according to 15 USC 1666b ( a ) Acreditor may not treat a payment on a credit card account under an open end consumer credit plan as late for any purpose. I received a call prior XX/XX/XXXX but the employee refused to give me her name and employee number so I told her that its a violation for her to call without my written consent and to please send me a copy of my original promissory note with my wet-ink signature for not only validation but verification of the debt and to please take notice of the opt out notice that was sent on XX/XX/XXXX
Company Response:
State: SC
Zip: 295XX
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: Nelnet is my student loan servicer and I currently have {$190000.00} of student loans. This will continue to increase as I complete my XXXX XXXX. I first submitted my application to update my income-driven repayment plan to SAVE on XX/XX/XXXX. To my confusion, there's nowhere in the application to explicitly choose the SAVE plan. However, I clicked " please choose the cheapest plan ''. I called Nelnet multiple times to ensure I'd be placed on the SAVE plan and was always left on hold for hours. Since I am a student with responsibilities, I couldn't wait on hold each time. The final time I finally got in contact with Nelnet, I had been on hold for over 4 hours. However, they did confirm they would switch me to the SAVE plan. My application was finally processed on XX/XX/XXXX ( almost 2 months after submission ). I was approved for an updated IDR plan, but much to my dismay it was NOT the SAVE plan. I re-applied to change my IDR plan to SAVE on XX/XX/XXXX. Once again, there was no option to click specifically for the SAVE plan and I had to leave it up to Nelnet. I called and waited on hold for hours again, and was again promised I'd be put on the SAVE plan. They also mentioned lower error rates with paper applications, and sent one in the mail. I received ( but never submitted ) the paper application- this paper application ALSO did not have an option to specifically request the SAVE plan. I was re-approved for an updated IDR on XX/XX/XXXX and was AGAIN devasted to see that I am still not on the SAVE plan. I feel HOPELESS. My current monthly interest expense is around {$1200.00}, which would be forgiven under the SAVE plan due to my income ( {$0.00} income as a student ). This interest expense will only continue to grow as interest accrues, both from taking out more debt to complete my degree and the compounding interest effect. The current expense is already {$1200.00} - more than many families pay for rent every month. An absurd amount that it being added to my debt every single month that Nelnet avoids their responsibility of putting me on the SAVE plan. Please, please, please help.
Company Response:
State: IL
Zip: 60607
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: I am writing to bring to your attention a concerning matter regarding the reporting of my student loan information, which I believe is in violation of 20 USC 1232g ( b ). According to the Family Educational Rights and Privacy Act ( FERPA ), also known as 20 USC 1232g, educational institutions are required to protect the privacy of student education records. Specifically, 20 USC 1232g ( b ) states that institutions must obtain written consent from the student before disclosing any personally identifiable information from their education records. However, it has come to my attention that my student loan information has been shared with third-party entities without my explicit consent. This unauthorized disclosure of my personal information is not only a breach of my privacy rights but also a violation of the aforementioned federal law. I request that you thoroughly investigate this matter and take appropriate actions to rectify the situation. Specifically, I would like you to ensure that my student loan information is no longer shared with any unauthorized third parties and that proper consent procedures are implemented to comply with 20 USC 1232g ( b ) moving forward. Moreover, I kindly request that you provide me with a detailed explanation of how this violation occurred and what measures will be taken to prevent similar incidents in the future. Transparency and accountability are crucial in addressing this issue effectively. I trust that you will handle this matter with the utmost seriousness and urgency it deserves. Please removing any and all reporting to my credit report. There was no written, verbal or oral consent giving to disclose my information to any third parties or affiliated reporting and processing companies.
Company Response:
State: IL
Zip: 611XX
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-17
Issue: Problem with a company's investigation into an existing problem
Subissue: Their investigation did not fix an error on your report
Consumer Complaint: I was late for my student loan many many years ago due to my bank changing bill pay company. I have never been late after that. That was back in XXXX. It's still over the 7 year threshold. I called to ask them when I was late, and the representative on the phone said I already disputed the charge. It's been over a year and it's still on there.
Company Response:
State: PA
Zip: 190XX
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-16
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: DEPT OF ED/NELNET XXXX please see docs attached company has violated 20 usc 1232g ( b ) the family educational rights and privacy act, that protects the privacy of student education records.
Company Response:
State: TX
Zip: 77380
Submitted Via: Web
Date Sent: 2024-01-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-15
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I submitted a written request to Nelnet for information on how to enroll in automatic payments at $ XXXX. Months later, on XXXX, they replied to my request, but they didn't include any of the information I requested. I replied to them again, reiterating my request. On XXXX, they replied to me, once again without any information on how to address my concern.
Company Response:
State: CO
Zip: XXXXX
Submitted Via: Web
Date Sent: 2024-01-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-16
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: THIS IS NOT A DUPLICATE COMPLAINT This is regarding Nelnet and their alleged, questionable tactics of servicing. I initiated a student loan consolidation from Nelnet to XXXX on XX/XX/XXXX. I have kept in contact throughout this process with both servicers to ensure a smooth transition. I logged in to my Nelnet account and it showed that the payoff was received XX/XX/XXXX ; and XX/XX/XXXX, respectively. However, after further review, I had a principle balance of XXXX cents ; which insinuates to me that the payment was shorted in this amount. I called Nelnet and I attempted to pay the XXXX cents balance with my debit card and the representative was unable to process it. She emailed her supervisor and was told by this supervisor that it would take 60-90 days for the closing process ; then was told by the end of this month ( XX/XX/XXXX ). I asked the rep which is it, as I need a definitive date. The supervisor then told her the end of this month. The representative could not tell me why a balance of XXXX cents was left on my account. So I then asked for them to close it out immediately, as this is still showing on my credit report. I asked to speak to their Ombudsman, but was given the phone number to their state Ombudsman and not the financial aid Ombudsman. I believe that Nelnet is purposely and fraudulently attempting to keep my account open, after it has received its payoff from the new servicer ( XXXX ) ; and ruining my credit utilization by not reporting " PAID AND CLOSED ''. Additionally, for them to tell me that it would take another 60-90 days to process this closure is unacceptable. After being given the incorrect information on contacting the financial aid Ombudsman, I called Nelnet back and processed the XXXX cents payment through their automated system. I have attached documentation from my account dashboard showing a XXXX ( {$0.00} ) balance ; and the dates of payments made. A further investigation needs to take place regarding Nelnet and their practices. I have attached all documentation including Identity verification documents. Thank you CFPB for your assistance.
Company Response:
State: NV
Zip: 89052
Submitted Via: Web
Date Sent: 2024-01-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-12
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: I have been trying for the past year to get Nelnet to stop their negative and inacurate reports concerning my Federal student loans. Nelnet has repeatedly refused to stop their negative reports which has caused me great harm as a XXXX XXXX XXXX XXXX XXXXXXXX veteran, currently homeless and trying to secure financing to by a house. for 7 years had been on an income based payment of {$0.00}. the last year of the loan prior to the loan being closed ( it should be discharged due to XXXX XXXX VA XXXX ) they required me to pay {$1.00} per month even though my income had not changed and my living situation had become much worse ( homelessness ). i disagreed with their request because i felt as though they were doing this in an attempt to trick me into paying this {$1.00} amount so as to reset the number of years at {$0.00} needed to discharge the debt. At the same time XXXX happened and i felt i was not required to make a payment as my loans were Federal loans. Nelnet began destroying my credit by reporting all 5 loans as delinquent. One month i was reported as current... the next 90 days late ( how is it possible to be 90 days late in the span of 30 days? ) They deliberately began reporting me to try and force me to make the {$1.00} payment ( it should have been {$0.00} ) thus resetting the consecutive number of years at {$0.00} so that they would be able to continue to collect on the loans and not discharge them. If this is not an illegal act... it should be. They created a situation so as to coherse me into doing something that was not in my best interest. they continue to report adversely even though the account is closed. i want them to stop causing me undo harm, please.
Company Response:
State: OR
Zip: 97322
Submitted Via: Web
Date Sent: 2024-01-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-12
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: Dear Nelnet Loan Servicing, I am writing to you once more to address significant legal concerns regarding the reporting of late payments on my student loan account and the management of my account since its acquisition. As a resident of California, I am protected by specific state laws in addition to my rights under federal law. First and foremost, I would like to address an issue with the transfer of my loan from XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX to Nelnet. I have not received full disclosure following this transfer, which is a requirement under federal law. Specifically, under the Fair Credit Reporting Act ( 15 U.S. Code 1681a ), any entity reporting credit information is mandated to maintain accuracy and full disclosure in its reporting practices. The lack of disclosure in this transfer is a concerning oversight that needs to be rectified. Additionally, I reiterate my concern regarding the compliance of Nelnet with 15 U.S. Code 1681a. This statute clearly states that reports containing information solely as to transactions or experiences between the consumer and the person making the report should not be communicated without explicit consumer consent. Given this, I request that Nelnet respond, under penalty of perjury, confirming your compliance with these legal requirements and provide evidence or explanation demonstrating adherence to this federal statute. Furthermore, as per the stipulations of California law and your privacy agreement, I am officially withdrawing any consent, implied or otherwise, for the sharing of my personal information with non-affiliated third parties, including Consumer Reporting Agencies ( CRAs ). To resolve this matter, I require the following actions : 1. Immediate removal of all inaccurately reported late payments from my credit report. 2. A comprehensive review of my account to ensure all information is accurate and compliant with both federal and state laws, including full disclosures and proof you sent them. 3. An exact original copy of the entire Master Promissory Note, ( which has been pending for more than 3 weeks of my original request ) 4. Written confirmation that these actions have been completed. The seriousness of these issues necessitates your prompt and thorough attention. Non-compliance will leave me with no alternative but to seek legal recourse to protect and enforce my consumer rights. I expect a prompt and comprehensive response addressing each of these points in detail. Sincerely,
Company Response:
State: CA
Zip: 902XX
Submitted Via: Web
Date Sent: 2024-01-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-17
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Nelnet Servicing put me in a Administrative Forbearance in XX/XX/2023 as I was moving to the new XXXX plan. I still made payments for XXXX, XXXX and XXXX, however Nelnet did not correctly apply my payments towards interest and principle despite choosing a general account payment as opposed to a specific group payment. Nelnet applied very little payment to the interest, and allowed {$420.00} do accrue by XX/XX/XXXX, when I made my XXXX payment to try and pay that interest off. However, again, Nelnet applied only {$33.00} of the {$500.00} dollar payment to the interest allow more to accrue. I will include screenshots of the information. When I called them, after XXXX and XXXX hangup that caused me to have restart the process again I got contradicting stories about why this was happening. The first Customer Agent didn't know why the payments were not being applied correctly and when she tried to transfer me to more specialized support, I got hung up on. After a second call, I found out that on their end ( according to them ) the payments were only applied to specific loan groups, meaning it was not a general payment. However I never picked the per group option, so this is either an error on how the website works, or it's a behavior they don't explain. The agent stated they'll submit a technical report and after much explanation she will ask that the payment be reapplied correctly towards interest first. There is no guarantee that they will follow through as they have shown no consistency in handling this case, and based on a cursory look on XXXX, this is an ongoing problem with Nelnet and their website.
Company Response:
State: MI
Zip: 48197
Submitted Via: Web
Date Sent: 2024-01-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A