Consumer complaint received 2019-10-22
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 graduated in XXXX with a XXXX 's in XXXX XXXX from XXXX University in XXXX. I got my XXXX degree from XXXX XXXX in XXXX Iowa.I left graduate school with just over XXXX XXXX in loans, with an interest rate of 7.63 percent. I have worked for non - profit organizations throughout my career XXXX - current. 

My loans were initially consolidated at the 7.63 percent interest rate. At the start of my career my loans were in deferment because I was making XXXX dollars an hour and could not afford the XXXX dollar plus payment. As such, I inquired multiple times about the public loan forgiveness program program. I was repeatedly told that I did not qualify for the program despite working in for XXXX XXXX XXXX and being a XXXX XXXX XXXX. 

Over the past 8 years I have consistently made payments to NelNet on the income based program. I was married for 7 of the 8 years and in a two income household paying XXXX dollars a month. I had a divorce last XX/XX/XXXX, and am now supporting my XXXX children on a single income. When I reapplied for the IBR program XXXX XXXX, my payment jumped to XXXX plus dollars. I did get a raise and had to start working more hours post divorce. This money, over XXXX , was taken out of my account and I was not aware the amount was set at that rate. Nelnet stated they communicated with my via my inbox on the Nelnet website, I did not get the communication. 

Subsequently, I placed the loan in deferment and was told by Nelnet that if I re consolidated the loan I would be eligible for the Public Loan Forgiveness Program, but would LOSE ALL  THE TIME I HAD PAID IN!! I had inquired MULTIPLE TIMES OVER THE PERIOD I PAID TO NELNET ( 7 years ) ABOUT CONSOLIDATING AND APPLYING FOR PUBLIC LOAN FORGIVENESS PRIOR TO THIS EVENT!! I was repeatedly told I was not eligible. 

My IBR application to the department of education ( XX/XX/XXXX ) for PLF did not qualify due to errors on the form made by my employer. I submitted the application today,XXXX, and I called the US department of Education about the decline letter ( XX/XX/XXXX ). I also asked about why now I was able to consolidate my loan and apply, when I should have been able to do this when I got out of XXXX XXXX or at the very least over the past 7/8 years. I believe the Department of Education employee number was XXXX - This person shared that initially, XXXX, I was not eligible because the type of loan ; however, she informed by that the regulations were changed about the type of loan I had and that I actually HAD BEEN eligible to re consolidate and apply for PLF. 

Aside from the egregious misinformation given by Nelnet, My loans are now XXXX XXXX dollars with an interest rate of 7.63 percent and I CAN NOT PAY even the interest on the loan and continue to have a home with a mortgage and all the other bills that caring for a family requires. I was told by Nelnet that the federal government sets income guidelines at the poverty limit for people holding student loans. While this may be the case, I would be held to that standard without being afforded the other benefits of living at the poverty line : federally funded health care, food stamps, public house, childcare assistance. 

In addition, over this most recent time of reapplication for IBF, each time I would call Nelnet about my payment I was given different information as to what was needed and the criteria used for setting IBR. 

In sum, My current student debt is XXXX $ the interest is 7.63 percent. I am a XXXX XXXX XXXX working two jobs and I am not able to manage this debt. Had I been given the correct information by my loan servicer, Nelnet, 8 years ago I would be nearing the end of the repayment under the Public Loan forgiveness program. I am entering another period of having to apply for income based program and am sure I will have to place the loan in deferment while a reasonable payment is set, at this point I do not know what to do about the loan and need assistance. I was not given accurate information to make appropriate financial decisions and these loans are and will impact my day to day life for the duration of my life.