Consumer complaint received 2022-05-27
Company: Nelnet, Inc.
State: NY
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:
I am writing to ( 1 ) file a Complaint against Nelnet for improperly processing an auto-debit payment of {$120.00} on XX/XX/2022, while my Nelnet account XXXX No. [ REDACTED ] ) was in a brief forbearance pending consolidation to XXXX XXXX and ( 2 ) document my Request for a refund of {$120.00} to resolve the Complaint, which has been outstanding since XX/XX/2022, and can be accomplished consistent with the instructions provided by XXXX XXXX to Nelnet during a three-way phone call on XX/XX/2022. Specifically : Nelnet failed to stop the XX/XX/2022, payment of {$120.00} from debiting from my bank account after I placed my Nelnet account containing one XXXX loan in a brief forbearance due to a pending Direct Loan Consolidation to XXXX XXXX. The consolidation is required to benefit from Public Service Loan Forgiveness ( PSLF ) under the Limited Waiver. Because I expect to receive full forgiveness under PSLF I am well above the XXXX qualifying payments required it made no sense for me to pay the XX/XX/2022, payment when it could be paid off by instead first by the pending consolidation and then forgiveness under PSLF. As detailed in the attached XXXX, Nelnets failure to stop the auto-debit was done in contravention of numerous statements Nelnet made to me both orally and in the plain language written on their website regarding forbearance and auto-debit which make clear that forbearance stops auto-debits from occurring. 
Nelnet continues to promise and only to then later refuse to issue me a refund of {$120.00} for the XX/XX/2022, payment that was improperly debited from my bank account during forbearance. As detailed in the attached Chronology, I have made diligent, repeated requests to Nelnet, beginning on XX/XX/2022, to process a refund. Despite multiple assurances that Nelnet would process the refund request, repeated assurances that a refund could be issued to me even after the new consolidation loan paid off the loan serviced by Nelnet, and supervisor authorization ( including following a triple escalation on XX/XX/2022 ) and assurances of the above points, Nelnet has intentionally delayed processing the requests and given various excuses for denying issuance of the refund to me. Although Nelnet is now saying that it can not process the refund despite Nelnets errors because the loan has been paid off, the truth is that servicer-to-servicer adjustments can be made months or even years after a loan has closed, a fact confirmed by multiple Nelnet representatives as well XXXX XXXX XXXX. 
Nelnet has engaged in predatory bait-and-switch practices that are deceptive and contrary to my best interest as a borrower. Nelnet has repeatedly used tactics that are harassing, dishonest, unethical, and seem intentionally designed to delay and frustrate me as the borrower into giving up so that Nelnet does not have to process a refund despite it having zero impact on their bottom line other than wasting their employees time in an amount that far exceeds the amount of the refund at issue or ensuring that the underlying loan is paid. It has been extremely time-consuming, exhausting, and absolutely maddening for me attempt to resolve this simple matter. Moreover, Nelnet deliberately making this process painful is contrary to the intent of a forbearance, which is not to create a new issue for a borrower. The Chronology in Exhibit A of the attached letter provides a detailed account of Nelnets unscrupulous tactics.

Company response to consumer: Closed with explanation