Consumer complaint received 2023-06-26
Company: Nelnet, Inc.
State: MA
Product: Student loan
Sub-product: Private student loan
Issue: Getting a loan
Sub-issue: Problem with the interest rate

Complaint:
Dear XXXX, I would like to file a grievance regarding XXXX student loans below mentioned, that I acquired from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX parent company XXXX XXXX XXXX XXXX the basis of predatory private lending practices. I believe that the circumstances under which I obtained these loans and the subsequent repayment terms are unjust and indicative of a lending system that took advantage of vulnerable individuals such as myself in seeking higher education. I believe that my personal case with XXXX XXXX XXXX XXXX XXXX is in alignment with a previous ruling by the CFPB that XXXX XXXX XXXX XXXX XXXX XXXX loan servicing practices increased costs and unfairly penalized student loan borrowers. I believe that my personal case with University XXXX XXXX is in alignment with a previous ruling by the FTC that University XXXX XXXX lured students in with deceptive advertising. University XXXX XXXX then passed students on to XXXX XXXX XXXX XXXX XXXX in a partnership that caused more financial harm to unsuspecting student borrowers. I kindly request that you review my case and consider the resolution options I have proposed below. 

XXXX. Loan Number : XXXX ( XXXX ) Disbursement Date : XX/XX/XXXX Loan Amount : {$3500.00} Amount Paid to XXXX XXXX XXXX XXXX XXXX - ( XX/XX/XXXX XX/XX/XXXX ) : {$7800.00} Amount Paid to Firstmark Services ( XX/XX/XXXX Current ) : {$1800.00} Total amount student has paid on {$3500.00} loan : {$9700.00} Current Outstanding Balance : {$1800.00} Amount student is expected to pay on {$3500.00} loan : {$11000.00} XXXX. Loan Number : XXXX ( XXXX ) Disbursement Date : XX/XX/XXXX Loan Amount : {$15000.00} Amount Paid to XXXX XXXX XXXX XXXX XXXX - ( XX/XX/XXXX XX/XX/XXXX ) : {$18000.00} Amount Paid to Firstmark Services ( XX/XX/XXXX Current ) : {$1800.00} Total amount student has paid on {$15000.00} loan : {$20000.00} Current Outstanding Balance : {$16000.00} Amount student is expected to pay on {$15000.00} loan : {$37000.00} XXXX. Loan Number : XXXX ( XXXX ) Disbursement Date : XX/XX/XXXX Loan Amount : {$1500.00} Amount Paid to XXXX XXXX XXXX XXXX XXXX - ( XX/XX/XXXX XX/XX/XXXX ) : {$2300.00} Amount Paid to Firstmark Services ( XX/XX/XXXX Current ) : {$740.00} Total amount student has paid on {$1500.00} loan : {$3000.00} Current Outstanding Balance : {$720.00} Amount student is expected to pay on {$1500.00} loan : {$3700.00} XXXX. Loan Number : XXXX ( XXXX ) Disbursement Date : XX/XX/XXXX Loan Amount : {$10000.00} Amount Paid to XXXX XXXX XXXX XXXX XXXX - ( XX/XX/XXXX XX/XX/XXXX ) : {$15000.00} Amount Paid to Firstmark Services ( XX/XX/XXXX Current ) : {$1700.00} Total amount student has paid on {$10000.00} loan : {$17000.00} Current Outstanding Balance : {$13000.00} Amount student is expected to pay on {$10000.00} loan : {$30000.00} Explanation and Grievance : In XXXX, I entered into an agreement with XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX were not backed by the federal government. I did not know enough to question this at that time. I was not fully aware of the intricacies of the lending process, and I was coerced into obtaining a co-signer for my XXXX XXXX XXXX XXXX XXXX XXXX XXXX to secure loan approval. I believe that this was also a form of egregious manipulation. Any time I called to put my loans into forbearance, XXXX XXXX XXXX XXXX XXXX would deny me the option to drop my cosigner as a penalty for needing to pause my payments. To this day, I have never been able to drop the cosigner from my loans as Firstmark Services has also adopted this practice. 

In early XXXX, I was informed that XXXX XXXX XXXX XXXX XXXX was getting out of the student lending business. On XX/XX/XXXX, after re-paying XXXX XXXX XXXX XXXX XXXX a total of {$44000.00}, ( between XX/XX/XXXX and XX/XX/XXXX ) on {$30000.00} total disbursements, XXXX XXXX XXXX XXXX XXXX sold my loans to Firstmark Services for an amount I do not know, making Firstmark Services the beneficiary of XXXX XXXX XXXX XXXX XXXX predatory lending practices. At the present time, I owe Firstmark Services {$32000.00} on a {$30000.00} loan. Given that Ive already paid a total of {$50000.00} towards my student loans, the expectation is that as a student borrower, I must pay {$83000.00} on a loan of {$30000.00}. I would have never agreed to these terms had they been appropriately presented to me as a student borrower. This was an intentional act on the part of XXXX XXXX XXXX XXXX XXXX to deceive student borrowers and manipulate us into making financial agreements that benefitted XXXX XXXX XXXX XXXX XXXX and to the detriment of the student borrower. By pushing me into high cost, high risk loans, XXXX XXXX XXXX XXXX XXXX has caused me great financial distress. As a woman of XXXX, this predatory lending practice further perpetuates the existing gender and XXXX wealth gap in a way that is both harmful and systemic. 

Upon reviewing my loans, I discovered that the interest rate and repayment conditions are significantly burdensome. Since XX/XX/XXXX, I have made consistent monthly payments, diligently fulfilling my obligations as a student borrower. However, it is disheartening to note that despite my payments totaling {$50000.00} on total disbursement amounts of {$30000.00}, my current lender, Firstmark Services has me on the hook for an additional {$32000.00}. It is evident from the above information that the interest rate and fees associated with my loans are exorbitant, leading to a seemingly endless repayment period. This has impacted me deeply and has left me in a state of financial strain, inhibiting my ability to pursue other life goals such as saving for retirement. 

XXXX XXXX XXXX XXXX XXXX XXXX and XXXX  XXXX XXXX XXXX record of predatory practices, I strongly believe that these loans were granted under those same predatory practices previously ruled on by the FTC and CFPB. The lending terms and interest rates are disproportionate and exploitative, ( attached student loans paperwork obtained from Firstmark Services on XX/XX/XXXX does not indicate interest rate charged. Paperwork only states when the interest rate cap was reached ), resulting in a cycle of perpetual indebtedness. I request that the CFPB thoroughly review my case, taking into consideration the predatory lending circumstances surrounding my loan agreement and the current financial burden it imposes.

Company response to consumer: Closed with explanation