Consumer complaint received 2023-10-17
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Nelnet, Inc. (DC)

Hello, I applied to the XXXX income driven repayment ( XXXX ) plan through the Federal Student Aid ( FSA ) website in XXXX. In this application I attached my proof of income and all necessary income verification documentation. After submission I received a notification that my application would be processed by my loan servicer ; Nelnet. My loan servicer had me on the XXXX plan with a {$700.00} payment due in XXXX that I could not afford. Which was why I applied to SAVE. 

The XXXX website stated it could take a XXXX days for my application to be processed. I waited XXXX weeks and checked my Nelnet account, it stated my application was still in process. I waited a few more days until XX/XX/XXXX before I got concerned as it had been almost a month since I initially submitted my application and I had not received any emails about my submission. 

Nelnet has its own version of an inbox, though they do email me about payments, they did not email me about the message waiting for me in their portal. The message stated that I needed to verify my income and this was delaying my application. I was confused as I had already submitted this previously on the XXXX website, I promptly submitted the documentation again. 10 days past, its now the end of XXXX and my {$700.00} payment is approaching XX/XX/XXXX. I call Nelnet to resolve this issue, I am on hold for an hour and XXXX minutes. They place an administrative forbearance on my account until XX/XX/2024. The representative tells me to wait a couple weeks to process my application. As we move into XXXX I note my account has accrued some {$600.00} in interest, though I do not have a payment. 

On XX/XX/XXXX I receive an email this time ( not the Nelnet inbox ) stating I need to provide proof of income between XXXX. I once again promptly submit it the day of the email. Several days later I log into my Nelnet account and it warns me I am missing more documentation for my XXXX account but does not specify what. I note that my interest is again growing in its daily accrual. 

Today, XX/XX/XXXX, I called Nelnet and was on hold for an hour and half in the morning. I had to hang up to attend to other matters. This afternoon I call back again and am on hold for XXXX hours. I finally reach a representative, and he states he is not sure why my application is being delayed. He states it could be processed between 30 days from now or until XXXX of 2024. 

He also stated that every time I added documentation it renewed my XXXX application and that the accrued interest ( now {$930.00} ) will probably not be waived under the XXXX plan. As only interest accrued while the application has been submitted and processed will be waived ( this was his understanding ). 
This means if in XXXX they need further documentation and my application is once again renewed, I could owe over {$2000.00} in interest due to their lack of transparency and negligence in processing XXXX applications. 

It is my sentiment that Nelnet does not have the resources nor the means to process a XXXX application in a timely manner. An application was supposed to take 10 days and now its approaching 3 months. Due to delayed communications, lack of process transparency, and negligence - Nelnet stands to make many thousands off of me and other borrowers. This is unacceptable predatory behavior off of those seeking higher education. I am a public servant, I work the for the federal government, I and others in my position demand better of the loan servicers for public loans.