Consumer complaint received 2019-04-15
Company: Nelnet, Inc.
State: NE
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:
XX/XX/XXXX RE : Disputing Consolidated Federal Student Loan from XX/XX/XXXX To : CFPB I am asking for assistance in investigating my student loan debt with Nelnet. I have tried on several occasions over multiple years to get assistance in understanding why my loan balance is not decreasing. I have been making monthly payments for over 17 years. I recently noticed that all my payments for the last 7 years have all went to interest. I have enclosed my payment history from Nelnet to show from XX/XX/XXXX to  XX/XX/XXXX I have paid {$39000.00} and this entire amount has went to interest only. I work in the financial industry and this can not be fair and appears to be highly deceptive in their lending practices. 

I called Nelnet on the evening of Tuesday, XX/XX/XXXX and asked if they could explain this to me. After over an hour on the phone, I asked for all of my documents to be sent to me so I could investigate and file a complaint against them. I explained I wanted all the documents showing all the fees and interest charged since XX/XX/XXXX. I did default on my loan back in XX/XX/XXXX/XX/XX/XXXX due to medical expenses and salary cuts during the great recession. Our medical expenses were extreme due to my husband being diagnosed with XXXX XXXX and he has since passed away from XXXX. During my husbands XXXX battle our daughter XXXX her XXXX  to XXXX due to a XXXX XXXX  of XXXX XXXX. She is currently confined to a XXXX  and will be depended on me the rest of her life. 

I took responsibility for my loans and wanted to pay back what I owed and worked with the collection agency to get it reinstated. In my call on Tuesday night, XX/XX/XXXX, I asked for copies all the fees and interest I was charged when I was in default and I was instructed Nelnet will only  release this information if I get a subpoena. How can this be legal to ask borrowers to pay for fees and interest that were not disclosed to them and no documentation will be provided without court documents. 

I graduated from the University of XXXX at XXXX in summer of XX/XX/XXXX with a loan debt and promissory note for {$33000.00}. I deferred my student loan for 5 years after graduating as my income would not cover my loan payment at that time. I did a consolidation in XX/XX/XXXX with my payments starting in XX/XX/XXXX with my new consolidated loan balance of {$42000.00}. If you look at my history I have paid on this loan since XX/XX/XXXX with payments over the last 17 years adding up to {$90000.00}. I have paid approximately 3 times what my original loan was back in XX/XX/XXXX. As you can see on my statement Nelnet claims I still owe {$63000.00}. This would total {$150000.00} ( 5 times my original loan ) and that does not even include additional interest on the {$63000.00} they say I still owe. How can this be fair and legal? I have more than paid this loan in full and it should reflect paid in full. 

I am looking for help or guidance in dealing with these deceptive practices and what legal rights I have. If needed I will contact a lawyer to see how I can get a subpoena to view the documents from the collection agency as I believe they will show illegal activity being done by this agency and lender during the great recession.

Company response to consumer: Closed with explanation