Consumer complaint received 2017-11-07
Company: Nelnet, Inc.
State: MA
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 completed the XXXX XXXX XXXX in XXXX XXXX in XX/XX/XXXX at XXXX XXXX College ( now XXXX XXXX University ). 

I was contacted by the Financial Aid Department at the XXXX XXXX College about consolidating my student loans because I would be out of the grace period for in school deferment. I was sent an application that was completed by XXXX which I signed and dated XX/XX/XXXX with XXXX XXXX XXXX ( XXXX ) who is now XXXX XXXX XXXX  according to XXXX. 

The consolidated loan data entered by XXXX contains a previously consolidated XXXX loan with XXXX XXXX ( now XXXX ) which importantly, I never received any payoff information or proof of discharge of underlying loans ; it also included a Federal loan which I have no knowledge of ever receiving or owing, no loan documents at all for this loan has ever been provided to me and just like the XXXX consolidation loan, I never received any payoff information ( discharge ) of the underlying loan ( s ). 

In both cases however, XXXX XXXX ( now XXXX ) and XXXX, XXXX billed me and I in fact made payments and continued to do so until XX/XX/XXXX when I began experiencing a financial hardship as a result of divorce proceedings and escalating legal fees in XX/XX/XXXX and XX/XX/XXXX. 

I received a notice of risk of default from XXXX dated XX/XX/XXXX. 

I received a Notice of Default from XXXX XXXX XXXX ( XXXX ) dated XX/XX/XXXX. According to this notice, XXXX paid a default claim to XXXX, however I am not aware that XXXX ever was the lender and have no idea how they are related to my loan. 

I also received a notice of default from XXXX XXXX XXXX dated XX/XX/XXXX, informing me that as of XX/XX/XXXX I was in default on two separate loans and referenced account number XXXX. This is in fact the only account number I have any reference of and it appears that XXXX never actually consolidated my loans but instead sold the APPLICATION according to XXXX ' summary prospectus filed with the XXXX XXXX XXXX on XX/XX/XXXX. See Link to SEC : XXXX : XXXX In any event, in XXXX XXXX the Massachusetts Higher Education Authority ( MHEAC ) certified to the Massachusetts Department of Revenue that I owed {$25000.00} and garnished my entire tax return of {$990.00}. I sent correspondence to XXXX XXXX XXXX on XX/XX/XXXX, XX/XX/XXXX and then directly to MHEAC on XX/XX/XXXX. 

I was required to enter into a Loan Rehabilitation Agreement with XXXX XXXX XXXX ( not the guarantor XXXX ). 

I then received a response from XXXX dated XX/XX/XXXX regarding my request for return of funds intercepted by MHEAC - and XXXX also wanted me to prove my financial hardship. 

MHEAC did return partial amount of intercepted funds however then XXXX also required me to enter into a rehabilitation loan agreement. I was denied requests Income Based Repayments however were willing to provide me a deferment. However, after I signed I was surprised to see that the deferment they offered me was applied retroactively and NOT prospectively. 

Next I was directed to begin my payments to XXXX whom I paid continuously from XX/XX/XXXX until XX/XX/XXXX when they supposedly transferred the loan to Nelnet. 

On XX/XX/XXXX I was denied a Parent Plus student loan by the United States Department of Education for my son who was entering college in the XX/XX/XXXX semester. The reason for denial was delinquent or discharged loans. I have spent the past year researching my student loans and other false credit reported about me. 

It turns out that XXXX was the entity who checked my credit through XXXX on XX/XX/XXXX and denied my credit directly on behalf of the U.S. Department of Education. 

Also, XXXX & Nelnet both report two student loans to all the credit reporting agencies, rather than one consolidated loan. The account numbers do not match the account numbers of the bills I receive. 

In XX/XX/XXXX or XX/XX/XXXX I found two credit reports obtained by my husband without my knowledge or consent and was included in exhibits by his attorney for our divorce hearing but never reviewed. I had not previously seen these. These reports show that several different entities claimed that I had student loans with them at the same time, in addition to XXXX, but NOT XXXX. There is also a report by XXXX. 

It appears XXXX sold my one application to MULTIPLE entities who all then claimed I owed them and reported false information to the credit reporting agencies. 

XXXX XXXX claims to be the holder of my loans now or according to XXXX at least. There is also information in the NSLDS that XXXX XXXX XXXX XXXX is also a holder of my loans. 

I allege that NONE of these entities actually hold any valid loans and that they are all committing fraud. I suspect they are reporting XXXX or XXXX 's - that were securitized by XXXX or XXXX and not the actual loans.

Company response to consumer: Closed with explanation