Consumer complaint received 2017-01-30
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Received bad information about my loan
Company: Nelnet, Inc. (ME)

Please accept this assistance request for relief from my student loan interest being capitalized into the principal amount. I have tried to work out the issue with my loan servicer, Nelnet, who informed me there is nothing they can do to remedy the situation. 

My original loan principal was {$100000.00} when I graduated XXXX in XXXX. My loans have accrued $ XXXX in interest while in school and the past three years while on Income Based Repayment. I am fully aware of the consequences of interest being capitalized in the principal as the loan continues to build and build with payments going up and up. I 've remained on IBR to avoid that situation and I have never missed a student loan payment. 

I know that I need to resubmit IBR re certification every year by the end of the year as I have done so for the past 3 years. I was informed over the phone by a Nelnet representative that the absolute latest date that I could submit re certification was XXXX XXXX. Nelnet representatives continually provided me with misinformation, incorrect dates and incorrect payment amounts. I worked vigorously to communicate with Nelnet, Studentloans.gov, and the IRS to get my re certification complete - there were issues with the online portal income certification, among other things. On Friday, XXXX XXXX, I believed all the necessary forms had been submitted via the online portal. On XXXX XXXX, I mailed the re certification and emailed the re certification as well to make sure it was 100 % complete. On Monday XXXX XXXX, I received nothing from Nelnet and believed it was taken care of. On Tuesday XXXX XXXX, I received an email from Nelnet stating my interest had been capitalized into the principal and my new loan balance was {$130000.00} with a monthly payment of $ XXXX/month up from the $ XXXX/month it was this year. I immediately called Nelnet and was told that the system automatically capitalizes the interest if the re certification is n't processed on time and that there is nothing they can do to help me. I spoke to two managers and then the head account manager and all said that they ca n't un capitalize my interest because I had missed the deadline. I stated I never received notice of a hard deadline and was told over the phone that the deadline was XXXX XXXX. They stated that I received notice through my online portal and that the deadline was actually in XXXX. I asked if they called or sent a letter to make sure I got notice and was aware of the deadline, they said they are not required to do so because they notified me through my online portal. I continued to ask if they could process my re certification and un capitalize my interest. They said no and that the " system '' does it automatically and they are just following the regulations of the Department of Education. 

I started asking for help to remedy this situation on XXXX/XXXX/XXXX after my student loan interest was capitalized. It is now XXXX/XXXX/XXXX and all that has happened is many phone calls and much aggravation with Nelnet and XXXX. As a result of this my student loans have been capitalized, Nelnet put me on Standard Repayment for maybe a day ( or less ) so my loan payment in XXXX was {$1400.00} +, and then they switched me back to income based repayment for XXXX for a payment of $ XXXX. It is unfair, un just, and wrong what is being done by the Dept. of Eduation and Nelnet, by capitalizing students interest into their principal, especially when the student gets their re certification information in on time. I beg this office to help assist me in my case to un capitalize my student loan interest from the principal. I am a hard working young professional. I have never missed a student loan payment, have a great credit score, and do everything I can to better my family and my community.