Consumer complaint received 2017-05-17
Company: Nelnet, Inc.
State: AZ
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 requested to have interest capitalized on three unsubsidized corrected since I was in school at least half-time ( XXXX credits ). A letter informing Nelnet was sent on XX/XX/XXXX identifying the issue and my school status was not applied correctly based on school status. I followed-up with Nelnet after the letter was received and Nelnet requested a copy of school enrollment verification to prove I was enrolled during the period in question. An enrollment verification letter was sent from XXXX XXXX XXXX College in XX/XX/XXXX. I followed up with Nelnet and was told that the information provided was not correct. I contacted XXXX XXXX again in XX/XX/XXXX to send out verification for the specific timeframe which I was enrolled and interest was capitalized. The verification was received by Nelnet and my account status changed on XX/XX/XXXX. The enrollment verification was applied as such I was only enrolled during the timeframe which I was trying to prove to have capitalized interest on unsubsidized loans recalculated based on school status. Nelnet took the verification received on XX/XX/XXXX and recalculated owed interest on my student loans. A new enrollment verification was secured from XXXX XXXX XXXX College on XX/XX/XXXX and faxed to Nelnet to prove enrollment. Enrolment Records personnel at XXXX XXXX spoke with XXXX XXXX who was supposed to update the account and interest and put the loans back into the condition prior to the erroneous changes on XX/XX/XXXX. I spoke with XXXX XXXX on XX/XX/XXXX who verified that she would be updating and fixing the loans to reflect how the loans were deferred prior to XX/XX/XXXX. I spoke with XXXX XXXX at Nelnet who outlined how the account / loans were being updated to reflect the deferment status the account should have been placed and interest on questioned unsubsidized loans reclassified to regular interest and not capitalized interest. She also detailed an amount due of {$150.00} in interest now due on the account. She could not explain how the balance was owed because the loans were being paid even though being in deferment status. XXXX identified and had access to reported enrollment status from XXXX XXXX XXXX College through the NSLDS reporting system, verifying my school status but Nelnet took the most current communication dated XX/XX/XXXX as the correct form of enrollment verification. The interest was determined and applied from loans when forbearance was applied to the loans in XX/XX/XXXX and XX/XX/XXXX between the timeframe of the end of the spring semester and the beginning of the fall semester. Prior to the events of XX/XX/XXXX, the deferment was applied continually without a break from XX/XX/XXXX to current. Nelnet recalculated and backdated interest not previously assessed to the loans from the timeframe in question in XX/XX/XXXX and XX/XX/XXXX. I spoke with XXXX at Nelnet on XX/XX/XXXX who stated that Nelnet has a program of being able to apply a Deferment Bridge to cover the end of the spring semester to the beginning of the fall semester, although it is not published on their website as an option and I should have known this option was available. All communication with Nelnet takes three to five business days and someone in a back office has to determine if changes are going to be made and Im not informed why and how interest is being applied to my loans. I would like to have the interest reversed on the timeframes of XX/XX/XXXX and XX/XX/XXXX since it was previously calculated as such and Nelnet incorrectly applied and would not change / update my records when they had access to enrollment information through the NSLDS reporting system.

Company response to consumer: Closed with explanation