Consumer complaint received 2018-05-01
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:
Each year I receive a request to update my personal information to remain in the income-driven repayment plan. This year, as in years past, I received my email requesting that I update my personal information so that Nelnet may recalibrate my monthly payment. The deadline for submission is generally sin late XX/XX/XXXX - XX/XX/XXXX. 

On, or about, XX/XX/XXXX, I submitted my yearly application for income-driven repayment plan. Upon the submission of my request, I received an email from Nelnet on XX/XX/XXXX, requesting additional information pertaining to my spouse 's income. That same day I submitted the requested paystubs to Nelnet so that they could confirm my wife 's income. On XX/XX/XXXX, I received 2 emails from Nelnet confirming their receipt of the additional information. On XX/XX/XXXX, I received another email from Nelnet confirming receipt of additional information from me that they requests. 

On XX/XX/XXXX, Nelnet again requested additional information. I complied with Nelnet 's request on XX/XX/XXXX. On XX/XX/XXXX I received a confirmation email from Nelnet advising that they received my documentation. Again on XX/XX/XXXX, I received a second email from Nelnet confirming that they received my additional information. 

As a result of the documents I submitted ( outlined above ) my student loans were recalibrated and a new monthly payment was generated based on my monthly income. This readjustment was pursuant to the income-driven repayment plan that I re-applied for. However, in XX/XX/XXXXI noticed that my monthly repayment amount increased by approximately {$1000.00}. I contacted Nelnet when I noticed this increase in payment. After speaking with a customer service representative, I was advised that they did not have any record of the documentation I submitted and that is detailed above. I proceeded to advise this representative that I had, in fact, submitted the documentation. Furthermore, this increase in monthly payment caused a past due balance of approximately {$2000.00}. This representative stated that I was going to need to re-do my income-driven application. I obliged with her request to answer questions regarding my income but I requested to be transferred to a manager. 

As a result of my concern I was connected with an individual in management. The manager advised that she could see in the system that the requested document was received by Nelnet. However, for some internal reason the information was not processed properly. At the conclusion of the call, the manager advised that the past due balance would need to be pain and that my correct monthly payment would be corrected and reflective on my online statement. 

Since that conversation, my monthly payments remained the same. However, I received a letter this week which advised that my payments were increasing again. I contacted Nelnet, and again they advised that they did not receive the requested documentation for my wife. I informed this representative that I recently experienced this same situation in XX/XX/XXXXand that management confirmed that Nelnet did receive my documents. However, Nelnet again advised that they did not have the documents nor did they have any note of that call from XX/XX/XXXX. I advised the representative that I had the documents to support their receipt of the information that they claim was never received. 

Despite this conversation and the offer to send them documents supporting my position, Nelnet advised that they only solution would be to re-do my income driven application and pay the {$4000.00} past due balance on my account. Another option would be to put the past due amount in deferment or forbearance and accrue additional and unnecessary interest. 

This practice is in bad faith and unfairly deceptive to its consumers. As an individual who makes monthly loan payments I have complied with all conditions precedent to remain in the income-driven plan. However, on two separate occasions now I have been taken away from my work for one hour to address problems with my loan repayment that should be non-existent. It is due to the error in processing by Nelnet that I have lost income and now have incurred additional payments that I would not otherwise have incurred. Furthermore, if I do not make this payment within the 60-90 day reporting period, this will have a negative impact on my credit history and score. 

I would hope that this practice be reprimanded and addressed.

Company response to consumer: Closed with explanation