Consumer complaint received 2024-06-05
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Nelnet, Inc. (GA)

Thousands of students were scammed by XXXX XXXX, Nelnet, and now Firstmark into taking out predatory private loans to attend for profit online schools such as the one I attended, XXXX XXXX XXXX XXXX Ca. As a matter of fact, XXXX XXXX was investigated by multiple students and state legislators and was proven to be a for profit school that prayed on students so much so that a few months before graduations told students to come up with more money forcing us to take out loans to receive our diplomas. With promises of jobs after graduation. 
Because of the numerous claims of fraud and misconduct perpetrated by these online for profit schools, such as the XXXX XXXX, I was able to file a Borrower Defense claim with the Dept. of Education against XXXX XXXX, and my Fed. loans of {$14000.00} were discharged and my credit repaired.

My Borrower Defense Claim was also part of the Sweet Vs. Cardona settlement for which I was a full class member. 
I am aware that XXXX was sued by XXXX state AGs regarding their predatory loans to attend these online for-profit schools and that XXXX XXXX were XXXX " preferred '' lending company in a " deal '' with these schools during the early 2000 's. These private loans with a high risk of default were part of a package deal offered to " for profit online schools ''. But loans made to students in states outside of the agreement, or those who were not in default for 7 months or more during a " specific '' time frame, were excluded. I am sure this was a big win for XXXX, but what a sham of a settlement deal for the rest of borrowers scammed into taking loans to at least XXXX for profit online schools. After the XXXX settlement, didn't XXXX also get out of the Federal student loan business due to scrutiny from lawmakers and borrower advocates? Didn't XXXX have to pay restitution to the Federal student loan borrowers for not informing students of IDR/IBR payments students could have enrolled in, but instead steered toward forbearance? Furthermore, hasn't XXXX been sued at least a half dozen times for other predatory loan practices and illegal collection practices? 
I am also aware of a " pilot '' program by which XXXX is sending out " applications '' to select students who may have filed Borrower Defense claims against their schools and were approved. This application is a sham. Why do we need to prove anything? XXXX knows who we are. Under the FTC " Holder Rule '' XXXX is liable for giving predatory loans in connection with online for-profit schools. Time is running out for XXXX to do right by students who were scammed into taking out private loans to attend online for profit colleges who have committed misconduct and misrepresented themselves to the public to entice students to enroll. XXXX XXXX XXXX has sent a letter to XXXX 's CEO asking to discharge these loans NOW! It's time XXXX do the right thing and discharge all these predatory private loans made to attend online for profit schools NOW! 

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