Consumer complaint received 2018-07-30
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Nelnet, Inc. (WA)

Hello CFPB, I have been dealing with Nelnet to handle my student loan payments for the last month. Ive been with them for a few years and have never had a problem until now. Last XXXX, I got married, and filed my taxes jointly. When Nelnet calculated my payment, it used both my spouses and my incomes combine, but didnt calculate that my husband also has student loan debt. Currently his loans are in deferment, as he is completing his XXXX XXXX through my employee discount via the University XXXX XXXX. Since renewing my student loan income based payment plan, my payment has jumped 2.5 time more than last year. It is now roughly 19 % of my monthly income. They assumed that I would have my spouses income as disposable that I would be able to use to pay my student loans, which isnt true, as he is also paying for his loans while they are deferred. Ive been trying to explain the situation to them, and have asked them to recalculate but havent been receiving any communication back. My husband has also tried to get in touch with someone in their customer service department, but has been led in circles. They asked that I submit a release form so that my husband is allowed to talk to them about my loans. I have filled out that form and uploaded it to their website. We have both been trying to get in touch with them for the past few weeks. I havent received any communication back, and only Nelnet has been returning communication to my husband, but only to tell him that I need to fill out an information release form. Weve been going in circles. Below are some email exchanges that weve has with Nelnet. Ive removed any sensitive information. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- From : XXXX XXXX XXXX To : " XXXX '' XXXX Sent : Thursday, XX/XX/XXXX, XXXX AM PDT Subject : Income-Based Monthly Payment Help - XXXX XXXX ( XXXX ) Dear Nelnet, I am writing you today to inquire about my current student loan payment. Over the last few years since I graduated, I have been fully employee, steadily making more money with my time and experience. I am currently only making {$39000.00} a year with my current employment. Since XXXX, my payments for repaying my student loans have been between $ XXXX {$160.00}, which has been very sustainable for me. In XX/XX/XXXX, I got married, and this last tax period, I filed my taxes jointly with my spouse. We both have student loan debt combining {$71000.00}. Were both making payments on our student loans. Currently my husband is working on his XXXX XXXX part time, using my spouse education benefit for working at the University XXXXXXXX XXXX. This benefit allows him to pay {$5.00} a credit, however, the actual cost is factored and played on top my taxable income at the end of the year. It is income I dont see or benefit from, though is used against me when tax session rolls around, as well as my student loan payment re-certification. 

Using all of this information, my husband and I make a combine income of about {$75000.00}, though some of that total is attributed to my phantom income from the schooling cost. This year, when I re-certified my student loan payment, it used our joint income to calculate everything. My current monthly payment is now {$410.00}, which is 2.5 times larger than my last years payment. My payment now is also 19 % of my monthly take-home income. 
I am currently working at the University XXXX XXXX, which qualifies for the Public Loan Forgiveness Program, and I am working on my 10 years. I currently have almost 4 years completed. On top of my Nelnet loans, I also have Perkin 's Loans that don't qualify which I am paying on monthly. That loan amount is about {$4000.00} total. The income-based plans are very reasonable for me, and I wish to stay on them, as well a continue working towards my forgiveness. I would like to have some help in trying to lower my payment, if possible. I know when you calculated my payment amount that you used my spouses income as well. I feel like the use of my spouses income has been used against me to increase my payments. Is there any way to only use my income? I can supply any documentation necessary. 
I hope there is something we can do to fix this. 

Sincerely, XXXX XXXX Account # : XXXX -- -- -- -- -- -- -- -- -- From : XXXX, XXXX ( XXXX ) Sent : Thursday, XX/XX/XXXX XXXX XXXX To : XXXX Cc : XXXX XXXX Subject : Fwd : xxxxxxxxxx - IDR issue XXXX never received a response from your organization after he submitted your required release. 
If he does not receive notice by the end of this week he will file a formal complaint with the Consumer Financial Protection Bureau. 
Someone must re-examine your IDR calculations. 

XXXX XXXX -- -- -- -- -- -- -- -- -- -- From : XXXX, XXXX ( XXXX ) XXXX Sent : Thursday, XX/XX/XXXX XXXX XXXX  To : XXXX Cc : XXXX XXXX Subject : Fwd : xxxxxxxxxx - IDR issue XXXX submitted your online info release today. 
-- -- -- -- -- -- -- -- From : XXXX, XXXX ( XXXX ) Sent : Tuesday, XX/XX/XXXX XXXX XXXX To : XXXX Cc : XXXX XXXX Subject : xxxxxxxxxxx - IDR issue ATTN : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, WA XXXX XXXX XXXX XXXX Dear Nelnet, My husband recently received notice that his IDR would increase from {$160.00} to {$410.00} beginning in XX/XX/XXXX. A customer service representative explained to him the new payment amount is based on our XXXX Tax Return, specifically our combined income due to filing Married, Filing Joint. 
Surely there is a mistake - his IDR increased 251 % with less than one month notice! 
I am unsure if your IDR calculator takes my student loans into account while determining my husbands. The attached PDF shows my current balance with XXXX XXXX XXXX. 
My IDR is in DEFFERMENT status because I am a STUDENT. However, I try to make payments when I can because this is a good idea. 
Please reexamine your IDR calculations for XXXX and respond to him directly on the status of your findings. 

Thank you, XXXX XXXX -- -- -- -- -- -- -- -- -- -- On Friday, XX/XX/XXXX, XXXX XXXX PDT, XXXX, XXXX ( XXXX ) XXXX wrote XXXX XXXX, XXXX a formal complaint via the CFPB website tonight. 
Nelnet, Check your records. On XX/XX/XXXX your company received confirmation from XXXX to release information. I notified your company and neither of us heard back. 
Your company is giving us the run around and its unacceptable. 
Get Outlook for XXXX -- -- -- -- -- -- - From : Nelnet Customer Solutions XXXX Sent : Friday, XX/XX/XXXX XXXX XXXX To : XXXX, XXXX ( XXXX ) Subject : RE : Re : Dear XXXX XXXX , Thank you for contacting Nelnet. 
Thank you for contacting Nelnet regarding XXXX student account. 
In order for Nelnet to release account information, we must first receive their written permission. Click the link provided below to access Nelnets Request for Authorization form online. 
https : //www.nelnet.comXXXX Please resubmit your inquiry once XXXX has provided us with their written permission. 
Were here for you when you need us. If you have any questions, please call us at XXXX or visit Nelnet.com. 

Sincerely, XXXX XXXX. 
Your Nelnet Customer Service Team -- -- -- -- -- -- -- -- XXXX XXXX XXXX XXXX Dear Nelnet, My husband recently received notice that his IDR would increase from {$160.00} to {$410.00} beginning in XX/XX/XXXX. A customer service representative explained to him the new payment amount is based on our XXXX Tax Return, specifically our combined income due to filing Married, Filing Joint. 
Surely there is a mistake - his IDR increased 251 % with less than one month notice! 
I am unsure if your IDR calculator takes my student loans into account while determining my husbands. The attached PDF shows my current balance with XXXX XXXX XXXX. 
My IDR is in DEFFERMENT status because I am a STUDENT. However, I try to make payments when I can because this is a good idea. When my payments resume, they will be about {$280.00} a month. 
Please reexamine your IDR calculations for XXXX and respond to him directly on the status of your findings. 

Thank you, XXXX XXXX Get Outlook for XXXX -- -- -- -- -- -- -- From : Nelnet Customer Solutions XXXX Sent : Thursday, XX/XX/XXXX XXXX XXXX  To : XXXX, XXXX ( XXXX ) Subject : RE : Fwd : Dear XXXX XXXX , Thank you for contacting Nelnet. 
The requested information below is necessary to meet federal privacy guidelines on the borrowers federal student loan account. Once we receive all the necessary information, we will be pleased to review your inquiry. Please reply to this e-mail and include the following : 1 ) Borrowers nine-digit Nelnet account number or Social Security number 2 ) First and Last Name of borrower 3 ) Date of Birth of  borrower Please restate your question or concern so we have everything we need to effectively research and respond to you in a timely manner. 
Were here for you when you need us. If you have any questions, please call us at XXXX or visitNelnet.com. 

Sincerely, XXXX XXXX  Your Nelnet Customer Service Team XXXX never received a response from your organization after he submitted your required release. If he does not receive notice by the end of this week he will file a formal complaint with the Consumer Financial Protection Bureau. 
Someone must re-examine your IDR calculations. 
-- -- -- -- -- -- -- On Monday, XX/XX/XXXX, XXXX XXXX PDT, Nelnet Customer Solutions XXXX wrote XXXX Account : XXXX Dear XXXX, Thank you for contacting Nelnet. 
The IBR is calculated by taking your Adjusted Gross Income ( AGI ), subtracting the Poverty Guideline Amount ( PGA ) for your state, then multiplying this number by 0.15. Then finally dividing that number by 12. This will give the approximate monthly payment amount.

Formula : * For example : Your AGI is {$40000.00} and for your family size the PGA is {$17000.00}, so your monthly payment would be : *This monthly payment amount would be prorated across all of your active federal student loans in a repayment status, including loans not serviced by Nelnet . 
Poverty Guideline Amount : This is the figure for your state and family size from the poverty guidelines published annually by the U.S. Department of Health and Human Services ( HHS ). If you are not a resident of a state identified in the poverty guidelines, your poverty guideline amount is the amount used for the 48 contiguous states.

The REPAYE is calculated by taking your Adjusted Gross Income ( AGI ), subtracting the Poverty Guideline Amount ( PGA ) for your state, then multiplying this number by 0.10. Then finally dividing that number by 12. This will give the approximate monthly payment amount. 
Formula : * For Example : Your AGI is {$40000.00} and for your family size the PGA is {$17000.00}, so your monthly payment would be : *This monthly payment amount would be prorated across all of your active federal student loans in a repayment status, including loans not serviced by Nelnet . 
Poverty Guideline Amount : This is the figure for your state and family size from the poverty guidelines published annually by the U.S. Department of Health and Human Services ( HHS ). If you are not a resident of a state identified in the poverty guidelines, your poverty guideline amount is the amount used for the 48 contiguous states.

We hope you find this information helpful. If you have any questions, please call us at XXXX or visit Nelnet.com. 

Sincerely, XXXX XXXX. 
Nelnet -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The information contained in this message is confidential proprietary property of Nelnet , Inc. and its affiliated companies ( Nelnet ) and is intended for the recipient only. Any reproduction, forwarding, or copying without the express permission of Nelnet is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to this e-mail.