Consumer complaint received 2022-10-13
Company: Nelnet, Inc.
State: ME
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
I believe that Nelnet is actively trying to prevent me from completing the steps required to obtain student loan forgiveness under the PSLF limited waiver program. Specifically, I believe Nelnet is knowingly providing incorrect information to me about a direct loan consolidation request I completed. I completed a PSLF application in XXXX of XXXX for the limited waiver program, as part of that process I was required to consolidate my current student loans held/serviced by Nelnet into a new loan serviced by XXXX. I completed the direct consolidation request on XX/XX/XXXX following the instructions on studentaid.gov. These instructions specified that an electronic signature was authorized and would speed up the processing of the application. The site indicates that my application was completed correctly, processed and sent to the servicers on XX/XX/XXXX. The information indicated that it could take up to 6 weeks to process this request. As of XX/XX/XXXX I had not received confirmation from XXXX or Nelnet that the consolidation application was being acted upon. At that time I requested XXXX confirm receipt of the request. On XX/XX/XXXX, I received an email from Nelnet stating that my application could not be processed because it was missing information, specifically a signature in " Section 29, page 5 ''. I contacted Nelnet to inform them that studentaid.gov indicated an electronic signature could be used and no signature was required for Nelnet to send the loan information to XXXX. Additionally I pointed out that " Section 29, on page 5 '' doesn't eve require a signature. Nelnet also seemed to indicate that I was consolidating through them. During this discussion, I explained the PSLF limited waiver specifically instructed me to follow certain instructions and use XXXX as a my loan servicer. At this time the Nelnet representative encouraged me to cancel my request and submit a new application to " clear up the confusion ''. I declined this request because doing so would eliminate any chances of possibly obtaining the {$10000.00} of forgiveness announced by the federal Department of Education due to the loans being XXXX loans. According to the Dept ED any consolidation request before XX/XX/XXXX to consolidate these FFEL loans into a new loan would be entitled to the {$10000.00} of forgiveness, any consolidation request after would be ineligible. At this time I requested that Nelnet send the loan information to XXXX. Nelnet indicated that their back office would send this information but at some point I would need to sign the application. After this discussion I contacted studentaid.gov and XXXX ( the direct loan consolidation application processor ) to confirm the signature requirements and that Nelnet was not the servicer listed on the application and that XXXX was going to be the servicer of the new direct consolidation loan. Both parties confirmed no physical signature was required, my application was completed correctly listing XXXX as the servicer and indicated they perceived the hold up to be on Nelnet 's end. On XX/XX/XXXX, I received a phone message from Nelnet instructing me to contact them regarding my consolidation request. I contacted them on XX/XX/XXXX. During this conversation Nelnet claimed that they had actually received two consolidation applications from me. One was dated XX/XX/XXXX and one was dated XX/XX/XXXX. They claimed that all payoff information for the XX/XX/XXXX request was sent to XXXX on XX/XX/XXXX. They also claimed that any communications after that date were related to the second XX/XX/XXXX consolidation request, which was the incomplete request without a signature. I believe this second request was created by Nelnet to justify their inaction on the XXXX XXXX request. I never filled out a second application, in fact I would be unable to complete one online until the first application was completed/denied ( I checked with studentaid.gov ). Nelnet also indicated that the XX/XX/XXXX request was received via postal mail an action that I certainly did not undertake. Nelnet also claimed that this second consolidation request listed them as the new loan servicer, which again is something I wouldn't have done. Nelnet also suggested that I ask them to cancel the applications and fill out a new one to clarify my intent. At this point I requested them to cancel the XX/XX/XXXX reconsolidation request since I didn't make it and didn't want Nelnet to service the loans. I specifically confirmed that only the XX/XX/XXXX reconsolidation application was being discussed and that so far as Nelnet was concerned the processing of the XX/XX/XXXX request was XXXX 's responsibility. Nelnet specifically indicated that any action taken by them regarding the XX/XX/XXXX request would not impact the XX/XX/XXXX request since their processing of that request was completed. I checked the XXXX website on XX/XX/XXXX, I noticed that they suddenly listed a " manual application '' for direct loan consolidation received on XX/XX/XXXX. I find the timing and nature of this highly suspicious because I never completed a manual application and because of the timing of discussions with Nelnet. I believe that Nelnet is fully aware of the signature requirements, limited-waiver provisions and processing requirements for consolidations and delayed action until I asked them about my status. I also believe that they illegally filled out a consolidation application without my consent or knowledge and tried to convince me to cancel my legitimate application so they could substitute one that wouldn't meet the PSLF limited waiver requirements.

Company response to consumer: Closed with explanation