Consumer complaint received 2019-05-01
Company: Nelnet, Inc.
State: FL
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:
Between XXXX and late XXXX my consolidated federal loan ( approx. $ XXXX ) was with XXXX  XXXX XXXX with a 2.87 % interest rate. During these 13 years, I was in an extended graduated repayment plan ( 25 year term ) and I paid $ XXXX/month. 

In XXXX, unbeknownst to me, my loan was transferred to XXXX. Because XXXX had my wrong address on file, I did not find out about the transfer until they emailed me in early XXXX. Fortunately, I had my monthly student loan payment on autopay to XXXX XXXX and it appears ( though I can't know for sure ) they forwarded the payments on to Nelnet until the time I became aware of the transfer. 

When Nelnet first sent me a monthly statement, the payment amount requested was over {$500.00}. The payment plan on my account was " graduated '' rather than " extended graduated, '' which meant a 10-year loan term rather than a 25-year loan term. 

I called Nelnet in XX/XX/XXXX to discuss the payment plan. I spoke with a nice woman named XXXX who attempted to determine why my payment plan was changed. She offered an income based repayment plan and I advised her that I would not qualify for an IBR, IDR or any other type of income-contingent program and that I just wanted to go back to the extended graduated plan I was previously on. ( I also gave her the address I have been at for the past 3 years so she could correct it in her system ) At first, XXXX said she could not put me in an extended graduated plan as I was not " eligible. '' When I explained to her that I certainly was eligible as I was on this plan previously with XXXX XXXX ( and that I was a consumer XXXX who has XXXX a lot of student loan issues ) she went back to her managers who then approved my entering the extended graduated plan with a monthly payment of {$300.00}. I received a letter from Nelnet reflecting this change. 

Then, on XX/XX/XXXX, XXXX from Nelnet called me to tell me that her system showed her that I was ineligible for the payment plan that she thought she previously put me into and that my monthly payment would be {$540.00}. I advised XXXX that I thought we had already resolved this matter and she agreed. She tried to put me in the extended graduated plan again and said she was not able to. I told her that I was going to file a complaint with the cfpb as this type of mistake in servicing transfer was unacceptable. At that time, she asked if I wanted to speak with a manager and I said yes. 

Nelnet manager XXXX then came on the phone and I explained the situation to him as well. XXXX said that it looked like there was a " hiccup '' in Nelnet 's system causing the problem. XXXX said that there was a problem with the prior disclosure from Nelnet when my loan was transferred which caused the incorrect change in payment plans. He said he would have this corrected and my payment would be {$310.00} under an extended graduated repayment plan. 

I am writing this complaint as I have little confidence that this adjustment will be made correctly given the issues that have already arisen with Nelnet. As of now, Nelnet still lists me as in a graduated plan with a monthly payment of {$540.00}. Please help make sure my loan details are corrected.

Company response to consumer: Closed with explanation