Consumer complaint received 2021-02-12
Company: Nelnet, Inc.
State: IA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
I enrolled in a training program for XXXX  school in XX/XX/XXXX. I was unable to obtain the certification due to medical. I withdrew from class and from there the problems started with Great Lakes. Over the course of 6 years, I continued to explain to Great Lakes what happened, I had only attended 1 class and withdrew due to medical. I was told I was still responsible for the loan because I had signed a master agreement. In XX/XX/XXXX ( 6+ years ) the loan defaulted and was sent to a different federal agency for collection. It should not have been sent to a collection agency, as I was actively disputing it with Great Lakes but they did it anyways. I have written correspondence with the company during the month of XX/XX/XXXX questioning, as I alway had the validity of the debt. They have a log of my calls in XX/XX/XXXX but conveniently the recordings are gone to validate I was in an active dispute. 

On XX/XX/XXXX, I contacted the new federal collection company and explained what happened back in XXXX. I was immediately asked why I had not completed the following : LOAN DISCHARGE APPLICATION : FALSE CERTIFICATION ( DISQUALIFYING STATUS ). I had no idea what they were referring to. The resolution had never been offered by Great Lakes, which would of resulted in my loan being discharged and all negative credit reporting being removed. 

I spoke to Great Lakes in depth on XX/XX/XXXX, who acknowledges I had never been offered the remedy but was told it wasnt their responsibility to offer me anything. How is that possible when this is a company governed to provide federal loans and the discharge is a federal program and remedy available? I simply asked them to delete the negative reporting or delete my file, while I work thru the discharge which can take 6-8 weeks or more. After all, had I been offered what I was legally entitled to, I wouldnt of been in the situation for a defaulted loan. 


The damage I have suffered financially is devastating due to their actions. I have been denied housing and credit. What credit I could obtain has been subprime rates, further resulting in irreparable harm to myself. I would calculate my losses due to their negligence to exceed {$100000.00} over the course of 10 years, since the loan became active. 

Great Lakes is currently in a active class action lawsuit for their predatory lending practices. I am not part of the lawsuit. 

I have asked for records of showing where I accepted deferments and why they held onto a loan for almost 7 years when the standard is 3 years before sending to collections? Was if so they could continue to add interest to the unpaid balance? I have asked for explanation of why I was not offered the remedy available to me. I have asked why am I being denied a goodwill adjustment, to delete the file and close this horrid experience out and was told what they do for others is of on concern to me. Is it because Im XXXX? Is systematic racism in play? What is the real reason they continue to hold this {$2000.00} defaulted loan that I am not responsible for over my head and continue to actively be a part of destroying my credit? How can they legally pick and choose who to help when it was them who played a major role by not offering the proper legal remedy available ever? 

I attached files. One is an email to my XXXX  instructor. Note the date and content of message indicating I would complete my physical on Monday. The other attachment is the withdraw record. Note the withdrawal date from the school. It is the Tuesday, the day immediately following my medical physical when I leaned I could never hold a XXXX  license. Great Lakes was always aware I had a medical reason but yet failed to properly inform me of the relief available.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation