Consumer complaint received 2019-03-23
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Nelnet, Inc. (CA)

When I graduated from XXXX school in XX/XX/XXXX, my financial aid counselor told me I owed XXXX XXXX Well it seems that they made a mistake when Nelnet started sending me correspondence in XXXX saying I had XXXX worth of debt. I called Nelnet immediately to ask about repayment options and they said it was too soon to begin repayment that the loans were in grace. Unfortunately, I failed my first XXXX exam and could not work for 3 months, waiting to take  the second exam in XX/XX/XXXX. I received the bill and called to ask about my options, I was advised to apply for repaye and I applied. A few months passed and I started working and again noticed my balance had risen to nearly 300k, when I called to inquire, they said I was not qualified for repaye bc I had undergraduate loans outstanding ( then why was I advised to go to REPAYE in the first place? ), but could apply for IBR, and since " a change had been made '' to my account the interest recapitalized. I was told IBR payments would be about {$460.00} dollars a month based on my income and that the balance would be forgiven after 25 years and given instructions on how to apply. Again, I received a huge bill a few weeks later, and a confusing email saying my balance was XXXX. I called to find out what was happening and was told my IBR would be around 500 $ month and told I needed different criteria to apply and that after 25 years the amount would be forgiven. In this time frame, I had been told so many different things that I went into action doing all the research I could. At this time I found out, I could have consolidated my loans and was never informed of this option, even though every time I called them, I was usually crying by the end of the call and asked what other options there were or if there was anything I could do to improve my situation. I complained about the interest recapitalizing and they said that it wasn't bc I didn't qualify for repaye, but it was because the loan came out of grace that it had gone up XXXX XXXX in a matter of months. There was nothing I could do to avoid the grace period or the leaving the grace period, so that was just the breaks. Doing more research, I also came to find out that the forgiven amount will be taxed! So I called them again today and brought this to their attention and they said, yes that's true. So in my case, the principle could climb to well past a XXXX dollars and I would end up paying hundreds of thousands on the forgiven amount. They also said yes that's true. I also explained I did not have the paystubs they wanted for IBR and asked if there was another way to show proof of income for IBR. I also noticed that my due date had been pushed back several  months again. I was told I was given administrative forbearance and that the principle would not recapitalize, but that the interest would continue to accrue. I asked again how much my IBR payments would be and was told $ XXXX. I asked how much I would need to pay to just keep the balance at XXXX for the next 25 years and was told I would need to pay XXXX/mo. I am a XXXX XXXX   and earn about XXXX before taxes and am at the end of my rope. I spend all day trying to figure out the best plan and all the information is so confusing. It feels like I am uninformed gambler playing Russian Roulette. Some people say I should pay the minimum IBR and try to create some savings for myself since I have none at XXXX years of age. However, if I do that, I will owe the IRS hundreds of thousands on a huge balance in 25 years. Some people say I should refinance, but if I do that and the laws change or I finally score that public service   job, I will be on the hook for the rest of my life for the XXXX and not qualify for forgiveness. I need any kind of help possible. I thought I was making my life better by continuing my education, but I actually made it worse and feel like an indentured servant. I also do not understand why they tell me a different IBR amount and different criteria every time I call them. Many of the health care forgiveness scholarships include nurses and doctors but not XXXX. Please help!