Consumer complaint received 2023-11-27
Company: Nelnet, Inc.
State: CA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I received notification my student loan payments would begin in XXXX. My first due date was scheduled for XX/XX/XXXX. 

On XX/XX/XXXX I requested to have my due date changed to the XXXX of each month beginning in XXXX. I was told this would be fine and that the change had been submitted. I was also told it would take 2-3 business days for this change to take place. On XX/XX/XXXX I called again to make sure the update had taken place as my portal was still showing XX/XX/XXXX for the due date. The person I spoke to told me the change would take up to 30 business days to take effect and that I needed to prepare for the XXXX draft. I did and assumed the date change would take place in XXXX. 

The draft was completed on XX/XX/XXXX. A few days after the draft I saw my due date had been updated and also that NelNet would be drafting ANOTHER payment only week from my initial payment because their system hadn't applied the initial payment. Their system showed the funds were drafted and that they were received by Nelnet but the representative told me the second payment would still process since the funds drafted on the XXXX aren't showing in my account yet. I was advised to remove the autodraft ( forcing me to forfeit the auto-pay interest discount ). 

Several days after this, as I continued to monitor my portal and the payment status, I saw that, not only had my payment still not been processed but it was showing a missed/late payment and the amount due for XXXX was now 2 months of premium ( since my XXXX payment STILL hadn't been applied ). I'm on an income based payment plan - I can not afford to submit double payments and I certainly can't afford to accomodate NelNet 's erratic and negligent handling of my loan. 

My portal has been giving me a " Payment Processing '' alert for over 4 weeks now. I've spoken to service several times ( each call is a 3hr wait and I don't have the luxury to keep this up ) to no avail. They coerced me into Admin Forbearance ( I don't even know what that is and they wouldn't explain it to me ) because it seemed the only option where I don't have to deal with the consequences of NelNet 's incompetence and risk missed payments on my account and credit report. 

To clarify, my XXXX payment was submitted on XX/XX/XXXX, Nelnet has confirmed they received my payment -on time and in full. They gave me some story about how their system is just taking some extra time to update everything because they weren't prepared for the influx of work. 

The last rep I spoke to, XX/XX/XXXX, told me the forbearance would have no adverse impact on me and that it would only be for a month to allow them time to catch up on my account. XXXX weeks ago I saw it was in effect until XX/XX/2024 -I still dont know the ramifications of being in forbearance and how it affects me long term. 

What else has Nelnet been dishonest about? 2 weeks ago I received an email from FSA telling me I had a missed payment and honestly, XXXX XXXXXXXX. I've done everything in my power to prevent this and despite my efforts, NelNet 's incompetence and negligence is going to cost me ( if not financially, mentally -I 've been stressing over this for 2 months straight now ). I've tried reaching out to them time and again despite having to spend XXXX hours on hold to speak to a live person, there's nothing more I can do but I can't sit by and let them ruin my record. 

As of today, XX/XX/XXXX, my portal is still showing the original payment is " processing '' This whole situation has me under a ridiculous amount of undo stress and frustration and there need to be consequences!

Company response to consumer: Closed with explanation