Consumer complaint received 2023-11-03
Company: Nelnet, Inc.
State: VA
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 have made attempts to pay my statement balance. The first time I scheduled the amount to be debited from my checking account on a specific date. The payment appeared to be processed on Nelnets end and my account had reflected a payment made on the date I specified. A week later I received a letter from Nelnet that the payment had been canceled.

I made a second attempt to pay my statement balance after confirming with my bank I had the accurate information listed. Again, the payment appeared to have been processed on Nelnets end and reflected the updated information as if they received and processed the payment. A week later I received the same letter saying the payment was canceled, and my account reverted back to the previous status as if no payment was ever made.

I reached out to my bank and they verified that there were no transactions from Nelnet or Dept of Education and all of my account information was accurate. I reached out to Nelnet and waited on hold for 2 hours before being on hold with support on and off for 3 additional hours.

At first they told me there was no bank information on file, then they said it was because Nelnet couldnt find the bank account. I have confirmed that the account information is correct and is the same account I use to pay all of my other bills with absolutely no issues. Nelnet kept insisting that this issue was with my bank. My fianc who has a different bank has had the same issue when he has tried to make payments on his Nelnet account. Which leads me to believe this is an issue on Nelnets end that they refuse to acknowledge or investigate. 

When I asked for evidence I could provide my bank with that Nelnet had indeed tried to deduct payments from my account, they said sure we will email you in 2-3 weeks since they are backed up right now.

My due date will have come and passed by then. If I can not provide my bank with evidence that there may be an issue on their end, how am I supposed to resolve the issue? I asked what they wanted me to do in the meantime as I did not want another administrative forbearance applied to my account. Since one had already been placed on as it took a month to process my request to move me from IBR to the graduated extended repayment plan. They said they will push back my due date to the end of the month, but that would take 2-3 days to update. It has been 4 days and still my account reflects my original due date.

I will be traveling next week and will not have the flexibility to mail a check, should they not update my due date in time. Im not even sure I would trust Nelnet to collect a check and properly apply it to my account. I do not feel it is fair to be penalized for Nelnets incompetence. I have made the attempt to contact them multiple times, and tried to make payments. I am unable to set up auto pay with Nelnet, which also excludes me from being able to take advantage of the small .25 % interest reduction. 

I have a full time job, and can not afford to sit on hold 5 hours a day in hopes that Nelnet can resolve my issues.

Company response to consumer: Closed with explanation