Consumer complaint received 2019-10-02 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Nelnet, Inc.
State: NM

Complaint narrative:
I received federal loans while attending XXXX school from XXXX - XXXX. The original loan amounts from XX/XX/XXXX are {$16000.00} and {$12000.00} with a 4.125 % interest rate. I have been paying the minimum or more amount due ( excluding maybe 4 months throughout the loan history ) for 16 years. Currently the amount due shows {$27000.00} and {$37000.00} - not sure how both loans more than doubled after paying for 16 years. 

In aprox. XXXX I contacted the servicer XXXX  and asked to reduce interest rate or negotiate a full payoff. I was told they do not negotiate or consider a work out while the loan is current and suggested I default. I defaulted and called again to negotiate. I was then told that my account was sent to a collection agency and I had to deal with the collection agency. I received 1 demand letter from the collection agency. The demand letter stated the attorney 's fees added {$16000.00} to my account. Note, only 1 month - 6 weeks passed since my default. No complaint was filed, no litigation. So the default letter fee was {$16000.00}. I was very upset and called the collection agency. They advised they would waive the {$16000.00} fee if I brought the account current. I immediately cured the default and followed up with the servicer to ensure my account was back on track. 

XXXX advised that my account was service transferred and they couldn't help me. In fact, I believe the federal loans from XXXX were consolidated in to 1 loan. XXXX advised I had to work with the new servicer. The account was transferred 1 - 2 more times and I have asked every server for a full accounting from inception to  current to ensure the {$16000.00} was removed and ensure all payments have been accurately accounted and to confirm there was only now 1 loan, not two. I have NEVER received a full pay history. I also suspect there may be a duplicate account that should be removed. Currently, I have asked Nelnet for over 3 years for a full account history - and have yet to receive it. I was advised that if I did not challenge the amount due with the prior servicers then they assume the amount is correct and they do not review the account when transfered. I advised that I have, in fact, challenged the amounts due with every servicer. In response I am advised that they are " looking into it ''. Instead of receiving a full history I have received other borrowers ( not mine ) account history 3 times - twice via US mail and once via email. I have received only my last 3 years payment history with Nelnet and I have been told that since my account has been transferred so many times they do not have my prior history and can not confirm the {$16000.00} was removed nor whether there is an accidental duplicate account. The last request was in XX/XX/XXXX and I have followed up with calls and emails several times in XXXX, XXXX and XXXX with no full history. 

I was recently told by Nelnet rep that the {$16000.00} may still be on my account and I would have to prove via a settlement agreement that it should have been removed. I advised that when I received the letter and called the collection agency they said they would not send a settlement or anything in writing but that once the account was current the fees would automatically be removed. 

I was told that per my loan agreement the lender is entitled to seek attorney 's fees to collect. I respond, that likely this is true but the legal fees would have to be reasonable. {$16000.00} for a signal demand letter is not reasonable. {$25.00} - {$100.00} is more reasonable. I was told " we're looking into it ... '' I still do not have a full payment history for my 2 federal loans.

Company response to consumer: Closed with explanation