Consumer complaint received 2023-10-04
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Nelnet, Inc. (VA)

Throughout the Covid-19 pandemic forbearance period ( XX/XX/XXXX- XX/XX/XXXXXXXX   ), I continued paying my student loans thinking that continuity was required to ensure I received public service loan forgiveness. I am currently a teacher in XXXX XXXX Public Schools, and am nearing 10 years of public service. In XX/XX/XXXX, I learned that I was eligible for a refund of payments made during the above mentioned period of time, and that those months would still be credited towards the 120 loan payments required for Public Service Loan Forgiveness. This was verified by the Department of Education on the Federal Student Aid website. 

Per the Department of Education 's instructions, I contacted my loan services Nelnet to initiate the request to get the money I paid throughout the forbearance period refunded. I spoke to XXXX ( employee ID # XXXX ) of Nelnet on XX/XX/XXXX and she explained that I would receive my refund check in 7-8 weeks. This representative specifically said I needed no further action until the beginning of XXXX, at which time I could call again if I had not received my refund. On this call, I also inquired about receiving documentation of this refund request and was told there was nothing I could receive but that I could reference the call date, time, representative name, and number. 

I contacted Nelnet on XX/XX/XXXX because I had not yet received my refund check. I spoke with XXXX ( employee ID # XXXX ). This representative confirmed that there was a note on my account that the refund request was made on XX/XX/XXXX. However she noted the Nelnet never began processing that request because my loans were transferred to XXXX- a different servicer- on XX/XX/XXXX. My request was not sent to XXXX at the time of transfer. The representative told me I would have to follow-up with XXXX regarding a new request. 

I called XXXX on XXXX and spoke with XXXX ( employee ID # XXXX ) who alerted me that they had no record of this request being passed from Nelnet to XXXX and that I am no longer able to request a refund as of XX/XX/XXXXXXXX  per Department of Education policies. I had not been alerted that my loans had been transferred to XXXX until XX/XX/XXXX. I was not notified by Nelnet that they were no longer processing my refund request, and I was specifically told by them not to take action until XXXX. Therefore, I had no way of knowing that my initial XX/XX/XXXX request was void until the request deadline had passed. 

The representative with XXXX sent a special request to their accounting team with the above information. However, she said that it was unlikely I'd be approved for this refund despite the unique and unfortunate circumstances. I was told this request would take up to 10 business days to process. 

I have been a public servant and a teacher for 10 years. I have made payments diligently throughout my public service. I took all the steps to request a refund, while awaiting the outcome of my PSLF application. The loan forgiveness will be a tremendous weight off of my plate, and the refund can make a significant difference in my family 's life now. The desired outcome is that I receive a refund for the money that is owed to me for payments during the forbearance period.