NELNET, INC.

2017-10-02

Chicago, IL

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Complaint: The capitalization process with Nelnet is unconscionable and unfair. I have a balance of over {$140000.00} in student loans with Dept of Ed serviced by Nelnet. I have been trying to pay them off one loan at a time. I was on an income-based repayment plan. Recently, I received a letter that I need to recertify otherwise my payment will go up. At the time, I was on maternity leave and out of the country, and my tax documents were not with me. So, I submitted my loan application on XXXX XXXX a couple of weeks late. I expected that I might pay a small fine or a higher payment for a month. My payment is going up on XXXX XXXX, XXXX from {$320.00} to {$1400.00}. However, on XXXX XXXX, XXXX, all my interest on all the loans was capitalized. I never received a warning or letter that they will capitalize the interest if I do not certify. I have not been late with my payments. Because of the amount of my loans that means that I will pay extra thousands of dollars for the duration of the loan. When I contacted Nelnet, I requested that my capitalization is reversed as I have already recertified. They said that they can not reverse it. Even the team leader XXXX admitted that their education efforts are not sufficient. This is the third time XXXX has capitalized my interest : first time, at the end of my grace period, the second time at the end of my forbearance period couple of years ago and third time now. How is the Department of Education expecting us to pay these student loans when they are forcing us to pay interest over interest over interest over interest at 6.55 % and 7.65 %? Furthermore, Nelnet warns you only about the immediate increase of payment. They do not explain how the income-based plan works in a long-term ; basically, these are negative amortization loans : the interest per period is not fully paid, and the outstanding balance increases over time. So, the debt only gets bigger and bigger. At last, there is no information or warning that Nelnet is capitalizing your interest and why. I have attached one of the form letters that I received regarding the recertification. Nothing has been mentioned about capitalization of my interest if I am late with the recertification. Of course, that will mean that my loan gets bigger, my time for repayment is longer and Nelnet service contract is longer and more lucrative.
Company Response: Closed with explanation

Timely Response

2017-10-01

Ft Belvoir, VA

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Company Response: Closed with explanation

Timely Response

2017-09-30

MA

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Complaint: On XX/XX/XXXX I submitted a request to XXXX XXXX XXXX XXXX through their email address " XXXXXXXXXXXX '' inquiring about how they came to be the servicer of my loan when I was not disabled, had never alleged I was disabled, had no knowledge of anyone who would report me to be disabled. I asked them for the name of the agent who reported to them that I was disabled. I also informed them that while I had received a notice of transfer of servicing from XXXX to Nelnet in a letter dated XX/XX/XXXX, I never received any notice of transfer from Nelnet. I did receive a notice of a change in account number from Nelnet dated XX/XX/XXXX, however, according to the record on Federal Student Aid NSLDS that I just recently found, Nelnet was reportedly the servicer since XX/XX/XXXX, while I had been making monthly payments to XXXX since XXXX until XXXX. This could explain why my balance did n't go down. I also reported to Nelnet that I did not receive a XXXX for XX/XX/XXXX or any statements at all for XXXX or XXXX of XX/XX/XXXX. I am about to file my XX/XX/XXXX taxes and need the form. I received a letter yesterday ( XX/XX/XXXX ) dated XX/XX/XXXX which simply enclosed a copy of my consolidated promissory note, and a note " Just know that we 're here for you when you need us ''. This is not very helpful. Finally, the consolidated promissory note they enclosed is being disputed because the underlying loans that XXXX XXXX XXXX, XXXX consolidated, were not known to me and XXXX the guarantor has not been able to provide me with any loan documents of them.
Company Response: Closed with explanation

Timely Response

2017-09-30

Nyc, NY

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Complaint: My loans are in an income based payment plan. My husband and I re-certified and a customer service agent informed us that if we sent in my husbands paystubs by the end of the week, the low payments would continue at we would stay on the payment plan. This was in early XXXX. Unfortunately, this was not true. After calling in multiple times and receiving different information, we were told that it would be processed the week of XXXX. We were also told to put our loan in forbearance while the IDR was being processed. We were also told to just not pay XXXX and take auto debit off. We also received multiple emails with different payment amounts over the last few weeks. Once it was processed, the effective date was XXXX. This caused two problems : 1. A lapse in IDR caused around {$9000.00} in interest to capitalize. 2. Our XXXX payment is over {$1000.00}. Nelnet 's practices are both unfair and deceptive. Nelnet should have all the respective documents so I will not be submitting any. Lastly, when you call Nelnet, they inform you " If you received multiple statements, please disregard the second one. ''
Company Response: Closed with explanation

Timely Response

2017-09-30

New Orleans, LA

Attempts to collect debt not owed

Debt collection: Federal student loan debt

Debt was paid
Complaint: debt has been paid in full but still reporting negatively and unpaid on my credit report hurting my credit score .The incorrect amount of the loan is also reporting on my credit report .i mailed letters to company to removed the wrong loan amount reporting & to update my account paid .I never received a response mail.
Company Response: Closed with explanation

Timely Response

2017-09-29

Las Vegas, NV

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Trouble with how payments are being handled
Complaint: XXXX XXXX,2017 I 've decided to make things right showing proof to Nelnet student loan just took over my student loan by writing checks from XXXX - XXXX post dated showing what I could pay well unexpectedly events happen that left my checking account little that Nelnet started processing my checks I know that if they waited a couple of days my direct deposit would have solve the problem but no they kept processing more then XXXX leaving my checking account from a XXXX negative to almost a thousand negative I was devastated and left with nothing and have XXXX daughter 's to support I was miserable felt violated I called them as they say it 's up to the treasure not only did I called but sent emails a few times to stop processing my checks no response.The only thing in my name that was on good standing my child support direct deposit all of it to the mistakes I thought was doing right. I never recover from it. My whole life I had people take advantage of me and it never stops I 'm a single mom I 'm trying to get my life back at the same time care for my XXXX XXXX XXXX dad and look out for my older brother fortunately family has helped but it does n't fix what I had.
Company Response: Closed with explanation

Timely Response

2017-09-29

Watkins, CO

Written notification about debt

Debt collection: Private student loan debt

Didn't receive enough information to verify debt
Complaint: XXXX XXXX, a unit of Nelnet, sent me a notice of increased payments calculated on my student loan due to a variable interest rate. They repeatedly refused, and continue to refuse, sending me the complete set of calculations supporting the change in payments. They sent partial libor related data but never sent the full equation and explanation. I contend this is egregiously wrong and evidence of bad faith in lending and the process of collecting payments. I would ask that they notified of a valid complaint and an investigation commenced. Failure to share details such as this generally implies there is something to hide. My name is XXXX XXXX and phone number is XXXX XXXX XXXX.
Company Response: Closed with explanation

Timely Response

2017-09-29

Bloomfield, CT

Struggling to repay your loan

Student loan: Federal student loan servicing

Can't get other flexible options for repaying your loan
Company Response: Closed with explanation

Timely Response

2017-09-27

Church Hill, MS

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Trouble with how payments are being handled
Company Response: Closed with explanation

Timely Response

2017-09-27

Atl, GA

Problem with a credit reporting company's investigation into an existing problem

Credit reporting, credit repair services, or other personal consumer reports: Credit reporting

Their investigation did not fix an error on your report
Company Response: Closed with explanation

Timely Response

2017-09-27

Wilmington, DE

Incorrect information on your report

Student loan: Federal student loan servicing

Account information incorrect
Complaint: I went out on XXXX form school and NelNet picked up my loan and payed them, now the school is trying to say that I own them money. When I first called them they said that I do not owe them any money and now they say that I do. Now every time I go and check my credit this pop-up. They said that I owe my provider, so I called them and they said that I do not owe them any money.
Company Response: Closed with explanation

Timely Response

2017-09-27

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Problem with customer service
Company Response: Closed with explanation

Timely Response

2017-09-26

Columbus, OH

Dealing with your lender or servicer

Student loan: Private student loan

Received bad information about your loan
Company Response: Closed with explanation

Timely Response

2017-09-26

Tampa, FL

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Trouble with how payments are being handled
Complaint: I made a payment on XXXX XXXX, XXXX to a loan that dispersed on XXXX/XXXX/XXXX. This is within 120 days of the dispersal of the loan. Nelnet applied a portion of my payment to interest on this loan. This happens every semester when I get a bit more than I need on my loan, and I pay back the excess in order to only borrow what we need to borrow. Nelnet consistently tries to cheat us out of some of our money. I have filed 2 previous complaints since I realized that they were doing this, and have been doing it since our first loan was sent to them to be serviced. Every time it happens, I contact them and ask why it has happened, and request that they fix it. They always state that they will fix it, and then they do n't. The last time, they only fixed it once I filed a complaint against them with the CFPB. This time I am being pre-emptive, as I should n't have to follow up with them, after every loan dispersal to make sure that they are doing what is required of them by law. I am attaching a copy of the transcript of my conversation with them today. I do hope that they will follow through, although I will be surprised if they do.
Company Response: Closed with explanation

Timely Response

2017-09-26

Washington, DC

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Complaint: Hello, On XX/XX/XXXX, I received notification from XXXX that Nelnet would be my new servicer, effective XX/XX/XXXX. On XX/XX/XXXX, my XXXX loan payment increased from {$210.00} to {$260.00} ( approximately {$50.00} ). I called Nelnet in late XX/XX/XXXX to try to understand the ~ {$50.00} increase, and received no answer. I requested an amortization schedule, and was told that would not be possible. I called back Nelnet on XX/XX/XXXX ( today ), and explained to the representative that I wanted to understand the {$50.00} increase, and my understanding is that I have approximately 10 years remaining for my consolidated loans and 5 years remaining for my variable rate loans. After a long pause, she returned to say that there is good news, and Nelnet has put my loans on a 25-year repayment schedule effective today, with 201 installments remaining, and a monthly payment of {$140.00}. I explained that I am not interested in 25 years, and requested a 15-year and 10-year plan, as I had thought I originally had in place. They said this is not possible. I also requested an amortization schedule for the second time, and was again told that would not be possible. Nelnet could not explain the {$50.00} increase either, so I filed a complaint with Nelnet. Nelnet indicated that I was paying too much every month, but could not explain why then XXXX/Nelnet does not owe me money or if my principal & interest owed have been accurately reduced as a result of these " over payments. '' Here is background on my XXXX Loans ( taken from email records ) : On XX/XX/XXXX, all of my loans were switched from a standard 10-year level repayment plan to a 15-year level repayment option. On XX/XX/XXXX, Account -2, with a variable interest rate, was adjusted to a 25-year extended repayment option, effective with my XX/XX/XXXX installment. The new monthly payment amount was approximately {$220.00} on XX/XX/XXXX. Account -3, with a variable interest rate, was adjusted to reflect the graduated repayment option for a 15-year term, effective with my XX/XX/XXXX installment. The new monthly payment amount was approximately {$78.00} on XX/XX/XXXX. ( Account -1, which is consolidated with a fixed interest rate, remained on the 15-year level repayment option ). Promotions and Incentives : -XXXX XX/XX/XXXX letter : I am eligible to receive a 2.5 % interest rate reduction for the -1 account signing up for XXXX XXXX. -XXXX XX/XX/XXXX letter : I should have received a rebate of 1 % off of my -1 loan amount. -XXXX XX/XX/XXXX letter : I am eligible to receive ( 1 ) a 2.5 % interest rate reduction for the -3 account signing up for XXXX XXXX ; and ( 2 ) 1 % interest rate reduction after making 36 timely payments -XXXX XX/XX/XXXX letter : I should have received a rebate of 1.5 % off of my -3 loan amount. -XXXX XX/XX/XXXX letter : I should have received a rebate of 3 % off of my -2 loan amount. -XXXX XX/XX/XXXX letter : I am eligible to receive a 2.5 % interest rate reduction for the -2 account signing up for XXXX XXXX.
Company Response: Closed with explanation

Timely Response

2017-09-26

GA

Attempts to collect debt not owed

Debt collection: Other debt

Debt is not yours
Complaint: I continue to receive collection emails from Nelnet for a debt that does not belong to me. I also informed them several months ago that I am actively participating in a Chapter XXXX Bankruptcy plan and that they are breaking the law by sending me collection notices -- especially since I never signed anything agreeing to pay for my son 's school tuition. I demand that they cease sending collection letters and cease their threats to increase collection efforts. I am filing this complaint because I am fed up with their insistence that the debt is mine without providing any evidence and that they continue to defy the US Bankruptcy laws. My greatest fear is that they will try to place a collection on my credit reports and I am filing this complaint to prevent that possibility as well. I have attached copy of letter I sent to Nelnet several months ago and copy of my Chapter XXXX information. These folks are despicable and need to be warned that they are breaking the bankruptcy law as well as illegally accusing me of a debt that I do not owe. Thank you.
Company Response: Closed with explanation

Timely Response

2017-09-25

Gr, MI

Incorrect information on your report

Student loan: Federal student loan servicing

Account information incorrect
Company Response: Closed with explanation

Timely Response

2017-09-24

Ft Belvoir, VA

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Company Response: Closed with explanation

Timely Response

2017-09-24

Sebring, FL

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Complaint: Nelnet Several accounts
Company Response: Closed with explanation

Timely Response

2017-09-24

Blue Ball, OH

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Company Response: Closed with explanation

Timely Response

2017-09-24

Columbus, OH

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Complaint: I have a series of loans for my daughters ' college tuition financed by Nelnet. Although my daughters graduated several years ago, Nelnet auto debits my payments each month from my checking account and the interest rates are all fixed. Nelnet is increasing my monthly payments for the second time since my daughters ' graduation dates. I received a notice from Nelnet that it would increase my payments by more than {$130.00} per month. I called its customer service number and requested a management audit of my loans and payment history. I received an updated notice from Nelnet that indicated it would increase my monthly payments by approximately {$30.00} per month. I never received the detailed explanation from a Nelnet manager explaining how my payments could increase if the principal amount loaned did not increase, I did n't miss a payment and the interest rate is fixed.The only possible explanation is that Nelnet is misapplying my payments. Again, I request a full management audit of my loans and payment history, and a senior manager 's detailed explanation of why Nelnet has to increase my monthly payments.
Company Response: Closed with explanation

Timely Response

2017-09-23

Sebring, FL

Incorrect information on your report

Credit reporting, credit repair services, or other personal consumer reports: Credit reporting

Account information incorrect
Complaint: I was talked into taking out XXXX loans to attend XXXX ( a XXXX XXXX campus ), I was able to repay and now my credit is damaged. ( Between XXXX ) A few years ago I received a letter that my principal balance was reduced by XXXX, my new balance was XXXX. Was told to continue to make payments at the time I was not able too. Then called XXXX to try and make payment arrangements and with XXXX XXXX who claimed they were not aware? I am willing to repay my loan. Over the years they continue to send me letters requesting re-payment now with years of interest added on. I would like help like help with loan forgiveness. They were not honest about the process and for the loan and they did not allow refunds owed to students that could have covered the loan cost. Thank XXXX XXXX
Company Response: Closed with explanation

Timely Response

2017-09-23

Aurora, CO

Credit monitoring or identity theft protection services

Student loan: Federal student loan servicing

Billing dispute for services
Company Response: Closed with explanation

Timely Response

2017-09-22

Nevis, NY

Dealing with your lender or servicer

Student loan: Federal student loan servicing

Received bad information about your loan
Company Response: Closed with explanation

Timely Response

2017-09-22

Aurora, CO

Communication tactics

Debt collection: Other debt

Frequent or repeated calls
Company Response: Closed with explanation

Timely Response