Consumer complaint received 2024-11-01 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Nelnet, Inc.
State: NY

Complaint narrative:
I request that Nelnet immediately refund the {$4200.00}, which my previous loan servicer, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, determined that I am entitled to because of an overpayment of my student loans. I am legally entitled to a refund of the money that I overpaid. 

Summary of Facts On or about early XXXX, I requested that XXXX, my loan servicer at the time, review my account, as I believed I had made payments that exceeded the 120 qualifying payments that entitled me to loan forgiveness under the PSLF program rules. See 5 CFR 537.106 ( b ). In a letter dated, XX/XX/XXXXXXXX XXXX XXXX XXXX stated : Our review determined that there is seven additional months that should have qualified for PSLF... Your refund totals {$4200.00}. See Letter from XXXX, dated XX/XX/XXXX, attached as Attachment A. The letter also advised, These additional months adjusts your PSLF effective date to XX/XX/XXXXXXXX XXXX XXXX. Please note that the {$4200.00} was in addition to the prior refund on XX/XX/XXXX in the amount of {$1300.00}. XXXXXXXX letter advised that the refund of {$4200.00} would be issued within 60-90 days of their letter, however, Nelnet took over the servicing/record-keeping of my loans prior to the refund being issued. 

A subsequent letter from XXXX, dated XX/XX/XXXX, provided a breakdown and further clarification of the payments that were to be refunded. See Letter from XXXX, dated XX/XX/XXXX, attached as Attachment B. As my new disbursement date was adjusted to XX/XX/XXXX, XXXX letter stated that I was entitled to reimbursement for the following months and amounts : Payment Date Amount XX/XX/XXXX {$540.00} XX/XX/XXXX {$540.00} XX/XX/XXXX {$540.00} XX/XX/XXXX {$540.00} XX/XX/XXXX {$540.00} XX/XX/XXXX {$530.00} XX/XX/XXXX {$530.00} XX/XX/XXXX {$140.00} XX/XX/XXXX {$140.00} XX/XX/XXXX {$140.00} Total : {$4200.00} Summary of Incorrect Statements in Nelnets XX/XX/XXXX Letter Nelnet at first claimed they couldn't locate my account. Then, in response to my request, Nelnet sent me a letter, on XX/XX/XXXX, which contained blatantly incorrect and absurd statements that : ( 1 ) it was not issuing reimbursement in the amount of {$4200.00} because a previous reimbursement for non-overlapping months in the amount of {$1300.00} was previously issued ; and ( 2 ) that my discharge date was XX/XX/XXXX and refunds only apply for payments that were paid after the discharge effective date are both blatantly incorrect. 

First, the reimbursement of {$4200.00} does not overlap with months for which the {$1300.00} was issued. Therefore, this is not a basis to deny my refund, and speaks to the incorrect and unfair accounting practices in place. 

Second, both the XX/XX/XXXX and XX/XX/XXXX letters from XXXX state that my discharge date was adjusted to XX/XX/XXXX. Therefore, Nelnets statement that it is denying my refund because refunds only apply to payments that were paid after the discharge effective date does not apply. 

For these reasons, among others, the {$4200.00} must be promptly issued. I have worked in public service for over 15 years and am entitled to a reimbursement for these overpayments under PSLF program rules. 

Moreover, please note that, as a dispute has arisen, pursuant to 5 CFR 537.110, a record of my student loans and all documentation on my case must be retained for a minimum of six years. Any claim that Nelnet can not locate my records is a direct violation of this federal regulation. 

When I contact Nelnet, they frequently claim they can not locate my account, which is untrue as the XX/XX/XXXX letter describes details of my account. I implore CFPB to intervene on my behalf for a fair resolution as the accounting and tracking practices of my lenders have been highly unjust.

Company response to consumer: Closed with explanation