Consumer complaint received 2024-05-16
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Nelnet, Inc. (OH)

I am initiating a formal grievance concerning Nelnet and the United States Department of Education Office of Federal Student Aid. My complaint centers on their gross negligence, creation of a conflict of interest, and engagement in actions that may contravene federal policies and/or laws. I am not the only party that sees issues with below mentioned information, as I was prompted to reach out regarding this complaint by a nonprofit and advisor due to the nature of the issue, and to follow up with the CFPB, and additional entities. 

In XX/XX/XXXX, I contacted Nelnet through their website to address the transfer of my XXXX-held loans from XXXX XXXX to Nelnet during XXXX XXXX pandemic. I reported not receiving any follow-up on my account details and described the service and communication as substandard. Significantly, I observed an unexplained increase in my total loan amount prior to the cessation of the payment pause, likely due to fees, fines, or interest, though this would go directly against the federal pause. Furthermore, the revised monthly payment exceeded the projections provided by the Department of Education when applying for the SAVE plan. My request for a review of these concerns by Nelnet went unanswered for weeks. 

Later, on XX/XX/XXXX, I filed a complaint ( Case # : XXXX ) with the Department of Education Office of Federal Student Aid, detailing the aforementioned issues and seeking investigative follow-up. Although promised a response within 15 business days, a period of 138 days elapsed before any communication would be sent or the investigation started. 

On XX/XX/XXXX, Nelnet issued a cursory response, failing to address any of my concerns, and merely reiterated loan repayment procedures and notifying my loans were transferred in XXXX, which I had told them. This response indicated a disregard for my detailed complaints, demonstrating a lack of due diligence and professionalism, and sets an incredibly low standard, especially given Nelnet 's role as " The Official Servicer of Federal Student Aid. '' After receiving the email from Nelnet, I attempted to attach the communication to my Federal Student Aid case, however the site was experiencing a technical issue preventing me from providing any additional information to my case. In a subsequent effort, I filed another complaint on XX/XX/XXXX ( Case # : XXXX ), highlighting technical issues with the Department of Education 's Federal Student Aid website, which precluded the attachment of pertinent documents. This issue was immediately dismissed without resolution by the Office of Federal Student Aid, and the persistent technical malfunction remains unaddressed, potentially affecting countless borrowers. 

My third complaint, lodged on XX/XX/XXXX, targeted the Department of Educations handling of my case, and their overall negligence on the issue; underscoring the prolonged delay and lack of substantive engagement from the federal authorities. Another automated email told me a response would be made within the 15 day period, and finally, on XX/XX/XXXX, my first complaint was finally being addressed, or so I thought. Regrettably, reading the email culminated in an unsatisfactory response, with Nelnet, the subject of the grievance, appointed to investigate the matter and leading communications hereafter, a clear conflict of interest. 

Moreover, on XX/XX/XXXX, despite an ongoing investigation into the account, now being lead by Nelnet themselves, Nelnet demanded immediate payment for the purportedly overdue amount, further exemplifying the lack of coordination and negligence in handling the matter, even their own investigation. If the amount owed is in dispute and under investigation, they should not be trying to collect on it. Per Nelnet, there was no note on my account of any case, investigation, or dispute, despite that Nelnet had notified me weeks before they were leading the investigation, so the agent left a note. 

Furthermore, on XX/XX/XXXX, Nelnet initiated contact again to demand payment. I promptly informed them that my account was still under investigation, a fact which they later acknowledged as part of the reason for their call before forwarding me to a specialist. Despite this, the subsequent discussion with a specialist was void of any investigative details. Instead, the focus was narrowed to the options under my current repayment plans : the standard plan, the SAVE plan, and the graduated repayment plan. I reiterated my inability to make payments under these circumstances, including while the accuracy and transparency of my account information is being actively investigated, and chose to remain on the standard plan. Following this, I successfully negotiated a 12-month forbearance, effective immediately after the specialist confirmed the details and received authorization, saying I would receive an email shortly after. Immediately after, the call concluded without any substantial disclosure regarding the status of the ongoing investigation.

Later that day, the specialist called back realizing they hadn't gone over the details of the investigation. They assured me my loan balance was identical to the start of the pandemic, and that there was absolutely nothing wrong or out of the ordinary. They reiterated this, and said they would send over all of the account history and financial information over for me to review, as it was not the right place or time for me to review such things for confirmation. Shortly after the call ended again. 

I have received no email, or communication, from Nelnet regarding the investigation and the information I was told over the phone. I am still waiting. I checked my account, and the numbers do not match what was told to me over the phone. Nelnet only allows borrowers to review their payment history, but not the history of the loan itself. This is particularly strange, as even a standard credit card will show you a history of the principal balance and interest. While the Truth in Lending Act and Fair Debt Collection Practices Act may not apply to ED-held loans, surely there should be some standard of transparency for borrowers. However, I still waited for that documentation I was promised. 

Finally, on XX/XX/XXXX, I received an email from Nelnet, on behalf of the Office of Federal Student Aid, stating my case would be closed. I am now back at the beginning, with the only difference being that I am in forbearance. I received no supporting documentation to verify Nelnet 's claims, the history of my balance, or anything outside of the forbearance communications. When I went to reply to this email, I received a bounce back notifying me that the email address Nelnet provided for me to reply to does not exist. Additionally, the Office of Federal Student Aid replied " You are receiving this message because your email to XXXX is not related to an existing Case. '' Both Nelnet and the US Department of Education Office of Federal Student Aid continue to draw out this issue, and fail to uphold their duties.