Consumer complaint received 2023-11-03
Company: Nelnet, Inc.
State: MA
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:
Amount applied to group XXXX - {$4500.00} ( Total payments according to records from XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XXXX, and XXXX ) > doesnt add up to the principal loan balance {$1000.00} {$80.00} Both payments are not shown as credited or posted payments XXXX reported that the original loan amount was {$33000.00} and it is actually {$20000.00}. No one can explain this discrepancy. 

XX/XX/XXXX I spent 3 hours on the phone with Nelnet on XX/XX/XXXX seeking help regarding two payments that have yet to be posted to my account. These payments are worth over {$1000.00} and were disbursed from my bank account to Nelnet ( one payment was disbursed on XX/XX/XXXX and the other on XX/XX/XXXX ). Yet, no one can tell me where the money has gone and why I do not see it reflected on my loan group that it was paid directly to. The supervisor I spoke to was just as confused as I was and could not understand why the payments were not reflected as a payment or a credit towards the original loan amount. There was also a $ XXXX discrepancy of the original loan amount. The original loan amount is less than {$21000.00} and the supervisor was trying to tell me that the original amount was {$33000.00}. The supervisor told me that she would look into this issue and call me back directly on XX/XX/XXXX or XX/XX/XXXX by the latest. It is XX/XX/XXXX and I have yet to hear from anyone. I have currently been on hold for 2 hours and 30 minutes with Nelnet and have not spoken to a single representative yet. The highest-level supervisor needs to contact me immediately. These payments were authorized and disbursed to the Department of Education/Nelnet who is now legally liable for that money. I will not hesitate to take legal action if this issue is not resolved. I have additionally gone on to identify discrepancies with the documentation of previous payments showing that payments made to one particular loan group are far greater than the remaining principal balance, indicating either incorrect documentation of payments or incorrect documentation of the outstanding principal balance. My payment history on Nelnet shows that they documented {$4500.00} paid to the principal balance of one single loan group ( XXXX ) since XXXX, yet that original loan amount was {$20000.00} and the principal balance has only dropped to {$17000.00} as opposed to {$16000.00} which it would be had that amount of money actually been credited to the loan group. This means that almost {$2200.00} is unaccounted for via Nelnet and the Department of Education. I have additional documentation of payment disbursements, loan amounts, and payment history with Nelnet but I was only able to upload 5 documents. 

XX/XX/XXXX I have now spent a total of more than 13.5 hours on the phone trying to have these discrepancies resolved. I have spoken to supervisors XXXX, XXXX XXXX, and XXXX. I was told that I would receive a call back from XXXX on XX/XX/XXXX or XX/XX/XXXX at the latest and did not receive a call back until XX/XX/XXXX. I was told I would receive a call back from XXXX in a few days after XX/XX/XXXX and have not received a returned phone call form her yet. I was told by XXXX that it is acceptable to be told that my funds that the company has had a hold of since XX/XX/XXXX and XX/XX/XXXX have not yet been applied to my loan because they are backed up and dont have the man power to return phone calls or process requests. I was told by XXXX on XX/XX/XXXX that the missing {$1000.00} payment was located but it has yet to be applied to my loan. No one has yet located the {$80.00} payment from XX/XX/XXXX. It was incorrectly documented that the principal loan balance of XXXX is off due to the missing payments. The principal loan balance is off based on payments made from XXXX. No one can explain the discrepancy in the original loan amount either. 

XXXX I have now exceeded 16 hours in phone calls to get resolutions/return phone calls for urgent matters/seek updates. A voicemail was left to call back because there was good news. I spoke with XXXX who asked me for the supervisors last names ( XXXX and XXXX ) although I only have XXXX last name because she told me they can not give out that information. XXXX told me that the {$1000.00} payment to loan group XXXX was located and applied. Yet, this is not reflected anywhere in my account. Even if the payment is still processing, there is no record of the payment in my payment history that shows it is processing. XXXX then tried to reach XXXX and XXXX again. XXXX could not reach either of them and asked if I wanted to be transferred to a different supervisor. I told XXXX that I did not want to start over and re-explain everything to another supervisor for the XXXX time. I asked XXXX to have XXXX or XXXX return my phone call. XXXX told me that they do not return phone calls and I told her that is not true because I have previously received call backs from both XXXX and XXXX. XXXX became flustered and again told me that they dont typically return phone calls but she can see that there were returned phone calls in the note. I also asked XXXX what updates there are regarding the other issues and account discrepancies. XXXX asked what issues/discrepancies. I asked XXXX to read the notes, XXXX stated that she had read the note. I told XXXX that there is another missing payment, issues with the principal balance of the loan and original loan amount. I told XXXX that the last person I spoke with read all of these discrepancies off of the notes to me. XXXX told me that she must have missed these when reading the notes because there are so many notes to read. At XXXX point I told XXXX to pass me along to a supervisor if she was not capable of handling the situation. XXXX was offended and told me she was capable. XXXX was not able to find any substantial information. XXXX told me that it would be helpful if I was willing to help her. I told XXXX that it would be helpful if they could help me as the consumer/customer that is being serviced. I asked XXXX what the point is of keeping all of these notes if people do not read them and I have to reiterate the same thing on every phone call. XXXX returned from hold at XXXX point to apologize for taking frustrations out on me. I am still on hold for a supervisor. I have requested the supervisors, supervisor because the past XXXX supervisors have been unable to resolve my situation. XXXX told me that she could not give me that information. I have also requested all records pertaining to my loans beyond payment history so that I can see every change in every loan amount. XXXX reported that she put in a request for these records. I also requested a copy of their notes on these issues for my own records. XXXX told me she would ask supervisor if it is possible to do so and I said XXXX sure that is part of my rights as a customer to see those records and make sure things are properly documented. XXXX was also unaware of who the CFO is of the company. 

Call dates : XX/XX/XXXX XXXX XXXX hours XX/XX/XXXX - XXXX hours XX/XX/XXXX - XXXX hours XX/XX/XXXX - XXXX minutes XXXX - attempted to return XXXX missed call from XXXX XXXX at XXXXXXXX XXXX but the phone line closed at XXXX XXXX XXXXXXXX - XXXX XXXX hours and counting I submitted complaints via Nelnet.com and the Federal Student Aid website but have yet to hear back from either.

Company response to consumer: Closed with explanation