Date Received: 2016-08-23
Issue: Dealing with my lender or servicer
Subissue: Having problems with customer service
Consumer Complaint: I am a XXXX in XXXX. I have applied for XXXX Loan forgiveness from Nelnet. 2 months ago I received a letter stating I was being turned down because the name of my XXXX was written in the wrong way. I filled out the form again and included a letter from my former principal stating that I was highly qualified XXXX fulfilling all of the requirements for XXXX loan forgiveness. I just received a second letter saying that I need to fill out the forms again because a supervisor 's title is cut off, a date is not written clearly enough, and that a supervisor signature is by stamp. I have been told by XXXX at my school that this process takes at least four months because Nelnet comes up with different reasons for several months just in order to be able to continue charging us. Some teachers are being rebuffed if they fill out service of more than 5 years, because Nelnet only wants 5 years noted on the TLF application. This is ridiculous! I know they 're intending to give me the loan forgiveness, because they have already put my account into forbearance. I am a hard-working XXXX and according to the law I deserve this XXXX loan forgiveness. What Nelnet is doing is against the spirit of the law.
Company Response:
State: MO
Zip: 641XX
Submitted Via: Web
Date Sent: 2016-08-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-08-23
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: I have a federal student loan for two years of XXXX, both with high interest rates 5.4 % and 6.8 % respectively. My loan term was 10 years with relatively manageable monthly payments, but in an effort to try to reduce my loans faster, I made several larger payments even before my grace period ended, and tried to make big payments so I could pay off my loan sooner than possible. When I was making bigger payments, I would manually enter the amounts I paid towards the principal and interest. I was told that using the autodebit function would reduce my interest rate slightly, so I went with that. I was recently reviewing my payment history and discovered that by using the autodebit function, I was in fact paying a lower and lower share of my principal amount. I spoke to my student loan servicer today and discovered that they apply the amount so that my last payment conforms with the end of my student loan term. That means that by paying more now, I 'm effectively giving more money to the loan servicer over the long term and when I asked if they would revisit my loan term, they said I could request it, but it would not be guaranteed. How is this legal? How can I be advancing my payments and they we able to extract extra money from me because of it.
Company Response:
State: NY
Zip: 107XX
Submitted Via: Web
Date Sent: 2016-08-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-08-23
Issue: Dealing with my lender or servicer
Subissue: Having problems with customer service
Consumer Complaint: The Department of Education forgave all of my previous ( prior to XX/XX/XXXX ) student loans due to XXXX. The monitoring period was from XXXX XXXX through XX/XX/XXXX, with XXXX of those loans having a monitoring period that extended to XX/XX/XXXX and XX/XX/XXXX, respectively. Therefore, the " Date of Status '' being reported to the credit bureaus ( XXXX, XXXX and XXXX ) should not show any activity beyond XXXX XXXX. Nor should a " recent balance '' stated, or implied, appear as though the accounts continue to have a balance owing. Furthermore, the " Recent balance '' should be shown to be " XXXX. '' This is not the case. Nelnet Inc, the student loan administrative arm for the Department of Education is reporting inaccurate and misleading information to the credit bureaus ; thus, distorting my credit score and worthiness. This has resulted in lost of credit and job opportunities, and has affected my finances negatively. The accounts that show under student loans, include : Department of Education, Nelnet Inc, and XXXX. All of the student loans were transferred to the Department of Education ; and, ultimately forgiven. Nelnet Inc, the administrative arm of the Department of Education, oversees student loans and any forgiveness of such loans. Reporting of such loans is also handled by Nelnet for the Department of Education.
Company Response:
State: TN
Zip: XXXXX
Submitted Via: Web
Date Sent: 2016-08-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes
Date Received: 2016-08-22
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: I was a grad student from XX/XX/XXXX-XX/XX/XXXX when I graduated and then again from XX/XX/XXXX - XX/XX/XXXX when I graduated with a XXXX XXXX degree. My loan servicer was Nelnet until XXXX/XXXX/XXXX. They serviced XXXX loans including XXXX XXXX consolidation loans totaling more than $ XXXX. XX/XX/XXXX, I requested that Nelnet take my loans out of in-school deferment and put them into repayment status. I received notice on XXXX/XXXX/XXXX that my " eligible '' loans were being put on an XXXX plan with a {$0.00} payment for 12 months beginning XXXX/XXXX/XXXX. ( I was never told why some loans were eligible and some loans were n't. ) This action should have given me 12 months of qualifying payments for PSLF, however I was notified in XXXX XXXX that Nelnet never put my loans into repayment XX/XX/XXXX. They explained to me that their computer system overrode the repayment request and kicked my loans back into in-school deferment status. I was told that in order to keep my loans in repayment status, I would have had to call every month to have the in-school deferment status manually overridden. This process was never explained to me. Furthermore, it took more than 6 months and numerous calls before an agent from Nelnet was finally able to explain this information to me. I started calling Nelnet in XX/XX/XXXX or XX/XX/XXXX to find out whether or not consolidating my remaining loans ( those that were not included on the {$0.00} IBR payment plan from XX/XX/XXXX-XX/XX/XXXX ) was a good financial plan for me. I asked how much interest I would pay if I consolidated the remaining loans versus if I did n't consolidate based on ten years of payments ( due to the fact that I will qualify for PSLF. ) Nelnet was not able to tell me how much interest I would pay if I did n't consolidate. They were only able to tell me how much I would pay if I did consolidate. They referred me to other websites and resources to find out about consolidation. In the meantime, I contacted Nelnet numerous times to verify exactly which loans had been included on the {$0.00} IBR payment plan from XX/XX/XXXX-XX/XX/XXXX so I would not include them in the consolidation calculations and lose the qualifying payments on those loans. Different Nelnet agents told me different loan numbers and they were not able to tell me which loan numbers on their site corresponded with the account numbers on studentloans.gov. ( The loan amounts, account numbers, and disbursement dates did n't exactly match up with the information on studentloans.gov, the website I was using to calculate consolidation. ) Finally, I asked if Nelnet could just send me the list of loans in writing that had been included on the {$0.00} XXXX payment plan from XX/XX/XXXX-XX/XX/XXXX and/or send me the list of qualifying payments for all of my loans. Nelnet told me to go into my account and manually count the number of qualifying payments I had made on my loans. The issue with this method was they did not have any information from XX/XX/XXXX-XX/XX/XXXX. Exasperated with Nelnet, I filled out the Public Service Loan Forgiveness Employment Verification form with XXXX so I could have my loans transferred to them and they could verify my payment history. My loans were transferred to XXXX in XXXX but they also have the wrong payment history ( I am still waiting for XXXX to calculate my correct qualifying payments. ) When I found out XXXX also had the wrong payment history, I started calling Nelnet again to try to confirm my prior payment history. That is when an agent told me for the first time that my loans with the {$0.00} XXXX from XX/XX/XXXX-XX/XX/XXXX had never officially been put into repayment.
Company Response:
State: CA
Zip: 91601
Submitted Via: Web
Date Sent: 2016-08-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-08-16
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: I suffered a XXXX 8 yrs ago and requested a XXXX discharge from my student debts. Due to an error in the national student debt database, my request was denied. Representatives at the Dept of Ed and Nelnet have explained the root of the data error, but each one has claimed to lack the authority or ability to correct it. Their inaction has cost me $ XXXX+ so far, and I have 13 years left on my loan. The representatives say that, when I consolidated my loans with my husband 's, the lump sum was entered into the national database under his name, and my loans were inaccurately marked as " paid in full '' rather than " transferred '' or " consolidated ''. Somehow, when monthly payments are due, the Accounts Payable Dept at Nelnet is still able to track my liability for the consolidated debt. When I request relief, however, the Debt Discharge Dept contends I have no debt from which to be discharged. The representatives have explained that, for purposes of discharge, I need to find a member of their staff who has the authority and ability to override the error in the database and recognize the portion of the debt that originated with me. XXXX Dept of Ed Ombudsmen and several Nelnet representatives all claim to lack the authority or ability to execute corrective measures. My husband and I have submitted applications for relief due to disability and hardship, on behalf of each of us as individuals and as a couple, to Nelnet and to the Dept of Ed. We 've participated in XXXX appeals through Dept of Ed Ombudsmen, and even though the US Dept of Civil Rights has a webpage dedicated to this issue, our Complaint was rejected based on " lack of jurisdiction ''. Where do we turn next? We 've been fortunate through all of this, to be able to continue to raise our children and pay our medical bills ; but we had to sell our home of 15 yrs, and our savings are gone. Miraculously, I have healed so substantially that I was able to go back to work this year. Please help me resolve this issue so, at XXXX yrs old, I can gain financial stability and have a fresh start at my new life.
Company Response:
State: MI
Zip: 480XX
Submitted Via: Web
Date Sent: 2016-08-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-08-16
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: I am repaying my loan since 2014 on time all the time. I have a 6.125 % interest rate on the loan. Well the loan has not gone down in two years of making payments and I wanted to start paying extra amounts to be applied to the principal of the loan. Nelnet said that is not possible, they will take the extra amount, but they will apply it first to the interest and then to the principal. I seems to me that is an unfair practice since they will be making more money out of my loan.
Company Response:
State: FL
Zip: 33027
Submitted Via: Web
Date Sent: 2016-08-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes
Date Received: 2016-08-16
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: I am set up to pay a set amount for my loans every month to Nelnet, my loan servicer. This amount is autodebited. A few months ago, I decided to pay an extra {$1400.00} at my loan on top of my usual monthly amount. On Nelnet 's website, I specifically chose to direct the full amount of this extra payment to Loan XXXX, which has the highest interest rate. I also specifically chose the option to NOT have this extra payment postpone my regular monthly due date for the loan. However, Nelnet ignored everything. While they put the {$1400.00} toward Loan XXXX, they stopped paying off Loan XXXX for the following months. Meaning that my scheduled monthly payments now only went to Loans XXXX and XXXX This made me accrue {$300.00} in extra interest to Loan XXXX AND ultimately it did not allow me to lower the principle on that loan as I had stated/intended when I paid the extra amount. The Nelnet customer service rep I spoke with said that Nelnet wanted to realign all of my monthly payment due dates given my extra payment. However, as I had already told Nelnet, all of that extra money should be given on TOP of the monthly payments, so it should not have changed anything with my due dates. This is a sketchy and dishonest strategy by NelNet to make sure that all loans end at the same time ( which is exactly what I was trying to avoid .... I wanted to pay off my loans in less than 10 years! ) so that they maximize the amount of interest they collect. I totally understand that the loan servicer needs to make money to stay in business, but they should not be allowed to ignore direct customer requests/specifications about payments in doing so. This dishonest business practice should not be tolerated by the CFPB.
Company Response:
State: MA
Zip: 02130
Submitted Via: Web
Date Sent: 2016-08-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes
Date Received: 2016-08-15
Issue: Dealing with my lender or servicer
Subissue: Need information about my balance/terms
Consumer Complaint: I have been attempting to get the promissory note for my consolidated loan ( done in 2005 ) since XX/XX/XXXX. For about a month, Nelnet claimed to have no information on my loan and no promissory note. I called almost daily. People would promise to look into the case and then not call back. I would ask to speak to a supervisor and instead get put to the main menu. When I would call back, there would be no documentation of my previous calls and I would have to start over. Finally, someone found my promissory note but the first XXXX pages were missing of the promissory note. Nelnet claims this is not their problem and blames Department of Education for not sending it to them. I need the promissory note as I have qualified for loan repayment from the XXXX XXXX XXXX XXXX ( XXXX ). The XXXX said that if the first XXXX pages of my promissory note can not be found, I can submit a letter from Nelnet stating what loans ( type, amount, date ) that were including in my consolidation. Nelnet refuses to write the letter since they did not consolidate the loan, even though the government branch that consolidated the loan no longer exists. Nelnet said they can see the information about what loans went into my consolidation but will not put it in a letter. On my insistence, they have sent it to their legal department to review but said that just the review would take weeks and that they will not send the letter anyways. I have been working with the Onbudsman Group and XXXX XXXX XXXX, who both state Nelnet should provide the letter and should have the full promissory note. Due to Nelnet 's poor customer service and negligence, I will lose my chance for loan repayment ( & gt ; {$200000.00} ).
Company Response:
State: CA
Zip: 94102
Submitted Via: Web
Date Sent: 2016-08-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-08-12
Issue: Dealing with my lender or servicer
Subissue: Trouble with how payments are handled
Consumer Complaint: I have some very serious concerns about Nelnet 's payment posting process, and I have conducted some tests to ensure my concerns are valid. I have been scheduling payments to ensure the payment is made on a XXXX, trying to ensure the weekend is not included. Here is what happens : Once the payment begins the processing, which is usually mid-day, my bank account shows the payment has processed and the amount debited from my account by XXXX the next day. Nelnet still shows the payment as processing and interest continues to compute. As a rule, Nelnet does not post the payment until the following Monday, allowing for an additional two days of interest. I think this is done purposefully to charge additional interest. Based on all the complaints I have read about Nelnet, I believe regulators should review their billing and payment system. As an auditor, I know it is very easy to manipulate a billing system to ensure payments are, " held '' so accounts incur additional interest. Thank you.
Company Response:
State: CA
Zip: 95661
Submitted Via: Web
Date Sent: 2016-08-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes
Date Received: 2016-08-12
Issue: Dealing with my lender or servicer
Subissue: Need information about my balance/terms
Consumer Complaint: Nelnet is reporting a 90 day late on my credit report. I do n't believe this is factual. I have consistently sent in my documents to defer my payments since graduation school. I have written them over 3 times to see documentation of this 90 day late in XXXX 2012. The worst part is that they are reporting all of my loan separately and that makes it look like I was late on over XXXX credit accounts. : - ( I feel this is unfair as I am trying to purchase a house and get a car and this is holding me back.
Company Response:
State: GA
Zip: 30168
Submitted Via: Web
Date Sent: 2016-08-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: Yes