Consumer complaint received 2023-01-10
Company: Nelnet, Inc.
State: AL
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
During my last XXXX - XXXX years as an XXXX, I had to take out a private loan to finish my degree. The original loan was through XXXX XXXX  the loans were sold to XXXX XXXX, and now they are with Firstmark Services. The customer service is XXXX ; I have made numerous calls to the company with questions, and I receive a different answer depending on the representative. When my loans were transferred to Firstmark in XX/XX/XXXX, my monthly payments were {$310.00}. I called Firstmark to ask if they offered an income-based payment plan, I was told yes. When I called back to ask about the paperwork required to an income-based payment plan, I was told that they DID NOT offer that plan at all. After suffering financial strain relating to the pandemic, I asked if there were any options for a reprieve/reduction in the monthly amount. I was told by a different representative that the company had an income-based option, but it was only allowed for one year. After reading this " income based '' application, the actual result is a temporary measure that reduces your monthly payment by 50 % for the first 6 months. During months XXXX - XXXX, the payment increases to 75 % of the original monthly amount. After one year, the monthly payments resume, usually at a HIGHER amount relative to the original monthly payment being made prior to their " 12 month payment reduction plan ''. 

I decided against their 12-month payment plan, and have continued to make my payments. In the past year, my payments keep increasing ( often with less than a month 's notice ). Between the months of XXXX and XXXX of XXXX, I had no choice but to defer monthly payments due to financial hardship. When payments resumed, they were {$310.00} ; I had expected some increase due to the deferment period. By XXXX of XXXX, the payment jumped to {$320.00}. In XX/XX/XXXX, the payment jumped to {$320.00}. I took my last allowed period of deferment between the months of XXXX and XX/XX/XXXX due to financial hardship. When payments resumed in XXXX, the monthly payment was {$360.00}. In XX/XX/XXXX, the monthly payment increased to {$390.00}. In about a year, my monthly payments have increased by {$81.00}. My total balance has exceeded the original loan. 

Today, XX/XX/XXXX, I received a second email from Firstmark Services stating : " In accordance with the terms and conditions of your loan agreement, and to ensure you are able to pay your loan within your remaining term, your payment has been recalculated. Effective XX/XX/XXXX, your new regular monthly payment increased to {$430.00} ''. I am already stressed about how to come up with the amount. The cost of EVERYTHING is increasing : food, fuel, rent. My wages have been stagnant for 2 years. It seems to me XXXX is more concerned about making money rather than helping their clients pay off their loans. I literally can not afford these sudden increases. The {$36.00} increase equates to half of our weekly food budget. It's disgusting. I am trying to refinance with other companies, but I do not make enough income to qualify.

Company response to consumer: Closed with explanation