Consumer complaint received 2023-06-15
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Nelnet, Inc. (MD)

On XX/XX/23, I called Nelnet to request refund ( XXXX ) of all monies paid during COVID forbearance based on the following documented information provided on Nelnet 's website : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

I was requesting refund because I had lost my employment and was in financial hardship. They informed me it would take 60-80 business days for the refund to be received. 

Following that time I requested consolidation of my loans on XX/XX/23, which was set to take 4-6 weeks to be completed. The loan was requested to be consolidated but still to remain with Nelnet. At no point was I informed in writing or verbally that a consolidation would impact my ability to receive a refund. 

I received a call on XX/XX/23 from Nelnet stating that my refund was denied because my loans were consolidated. 

I called back on XX/XX/23 to ask to speak with and representative and then a Nelnet solution 's supervisor to understand why it was denied because I made the request prior to the consolidation request. I was told first, it was because of both a Nelnet and Dept of Educations policy that refunds were not allowed to be issued after loan consolidation. 

I asked to be provided this policy in writing, on their website or as a clause in the COVID forbearance refund information. I was informed that this was not a policy that was in writing it was just something they " chose '' to do. I asked how was I as a consumer able to know about the policy beforehand if it is not available to me in writing, I was provided with a response of " I am not sure. '' When I asked additional questions, both the initial representative and the solutions supervisor informed me that both Nelnet and Depart of Education denied the request, I was told this multiple times. When I asked for the date in which the request was sent to the Department of Education the Solutions supervisor then informed me it was actually never sent to the Dept of Education. I then asked why did the both representatives provide false information and said the Dept of Education denied the request, in which no answer or explanation was provided. 

When I asked to escalate the issue the individual told me she had the final say in " all of Nelnet '' and their was no supervisor above her. 

In summary, Nelnet has continued to have deceptive practices. They first ensured the consolidation request was completed quickly so that they would not have to issue the refund. Second, both representatives of Nelnet provided false information to me as a consumer stating that the Dept of Education denied the request when in fact Nelnet never sent it to the and only denied it within their department based on a policy that is located nowhere in writing or where I as a borrower could have had access to. 

Additionally, the emotional distress and turmoil I have had to experience from being provided false information has left me is extreme distress in addition to now have loans with a servicer that actively attempts defraud consumers. To owe over XXXX in loans to a loan servicer that actively lies to borrowers and also does not place policies in writing is beyond polarizing. Especially while working with federal funded programs.