Consumer complaint received 2023-10-18
Company: Nelnet, Inc.
State: NJ
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:
Hello, Upon the restart of student loan payments I provided my required amount and a bit of excess to address loan principal on XXXX XX/XX/ 2023. The excess was incorrectly allocated - seemingly haphazardly across the remaining loans rather than to the loan with the highest interest rate. Applying the payment to the loan with the highest interest rate would result in the minimum possible payment over time for me. NelNet has refused to justify their allocation of my payment. Further, they have not responded to my email or calls. They are clearly trying to manipulate my payments to increase my overall payment and loan duration. 

Further, the following issues are clear : ( 1 ) Significant issues with Auto-debt with amounts and due dates. I had a incorrect amount due ( of course it was significantly higher than my payment plan ) and XXXX auto-debt date ( XXXX was when bills are due ). Nelnet also did not seek consent once my loans were transferred from Greater Lakes or before the freeze was lifted to proceed with auto-debt. I cancelled this feature because I do not trust them based on the horror stories on here and due I previously stated. One person had like {$1500.00} taken out and another had the same amount deducted 3 times! Once I cancelled the Auto-debit, the amount and due date adjusted to have a forbearance applied. I wonder if those issues with auto-debit are deliberate to make sure borrower doesn't take advantage of the 0.25 % reduction in interest.

( 2 ) Inability to process applications correctly or provide resolutions for errors caused by Nelnet. Processed my application wrong twice. Was placed in PAYE instead of SAVE despite. They prioritized forgiveness over total cost of the loan ( Grad loans ). Then directed to file another application, which was rejected as a duplicate.

( 3 ) Excessive processing times beyond what would be expected even with high demand. My third application was over the phone application and has been processing for over 50 DAYS OR ABOUT 35 BUSINESS DAYS. Every time I call, they move the average processing time to whatever I have been waiting and state to call back next week.

( 4 ) Nelnet wait times embody poor business practices. Not only do borrowers have to be on hold for hours ; Per call is about a 2+ hour wait even if you call when they open. The customer service is not clear on internal procedures or review times. It is not clear about the processing queue or how long it will take to process an application that should take less then 5 minutes to do.

( 5 ) Using what appears to be delay tactics or have useless resolution methods. Recently, I was allowed ( which is hard to get ) to speak to a supervisor who put in a request for processing/review. This request makes sure the application is reviewed within 10 business days. I am approaching that date and do not believe anything will result in fixing my situation with enrolling in the SAVE plan. 

( 6 ) Changing dates for when applications is received. The dashboard has changed my receiving date around 3 TIMES and was not accurate in the first place.

( 7 ) Nelnet doesn't even follow their own policies. Borrowers are suppose to get emails every 10 days about the application status. It was about 30 days between the status emails.

Company response to consumer: Closed with explanation