Consumer complaint received 2018-06-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Nelnet, Inc.
State: OH

Complaint narrative:
Dear CFPB - I have had a consolidated student loan that was consolidated XX/XX/XXXX that I have paid regularly, with some periods of deferment, to Direct Loan Servicing Center online 's bill pay until I got the email below in XX/XX/XXXX. They were my original loan servicer when I consolidated. The original loan amount was {$20000.00} and consolidate in XX/XX/XXXX. 

Nelnet was to TRANSFER ( this is clearly indicated in correspondance ) the loan balance. After wondering why my balance has yet to reduce at all in the 20 years I've been repaying this, Nelnet is claiming I signed up for a consolidation, not a transfer, and my loan, after nearly 14 years of repayment to the original service has been reset. 

According to Nelnet 's amortization, I will now be XXXX years old and repay them {$48000.00} dollars. This is after paying over {$20000.00} to XXXX XXXX XXXX XXXX from XX/XX/XXXX - XX/XX/XXXX. This company is no longer in business, and nowhere in the entire universe does proof of these prior payments to XXXX XXXX exist as I paid them through the company 's website payment portal. 

So in summary, I will spend my entire working life and roughly {$80000.00} on student loan that was originally less than {$20000.00} unless someone can help me. 

On top of this, the interest charged on my deferments from XXXX XXXX XXXX XXXX is now considered principal to Nelnet and they have the audacity to charge interest on the interest accrued during deferments. 

I have called Nelnet and requested my consolidation application as guaranteed by law with no response. 

I have contacted the Office of Ombudsman for Federal Student Loans for help only to be told this is normal and I should pay them whatever they want no matter how usurious this seems to me. 

In the past five years alone, I have paid Nelnet {$12000.00} ( roughly 60 % of the original loan amount that was initiated nearly 20 years ago ). Less than {$2000.00} of these payments have gone to the principal. 

This is completely unreasonable, and honestly, I find it hard to believe this is legal at all. 
I am hoping you can help because I am running out of options here other than the obvious which overpay for my loan by tens of thousands of dollars. 

Original email begins here : Dear Borrower, This e-mail is to inform you that your Direct Loan, with the XXXX XXXX XXXX XXXX, has been transferred to Nelnet. As the number of XXXX XXXX continues to grow, Federal Student Aid has expanded their federal loan servicers to provide additional servicing capacity for the Title IV loans owned by the U.S. Department of Education. This will ensure an efficient and effective multi-servicer, borrower-centric approach to servicing. Please note that it may take up to 10 days before your new servicer has completely loaded your information to their system. Also, please be aware that if you are a borrower that was on the XXXX XXXX XXXX XXXX 's Kwikpay auto debit program, that this information will be sent to your new servicer. You will shortly be receiving correspondence from your new servicer related to the transfer of your Direct Loan. This will confirm that the new servicer has completed the transfer of your loan at which time you may contact Nelnet by calling XXXX. This is available 24 hours a day 7 days a week. You can also visit their website at www.nelnet.com. Please note that the Department of Education 's servicers may use websites that do not have a .gov domain. 



Effective immediately, please submit any required payments to Nelnet. Make your check or money order payable to Nelnet and mail to : U.S. Department of Education XXXX XXXX XXXX XXXX, GA XXXX If you pay your student loan electronically through your bank or use another method such as an independent bill payer servicer, please advise them of the new payment address above. This will ensure your payments get sent to your new servicer on time. 



The XXXX XXXX XXXX XXXX will forward any unprocessed applications, such as deferments and forbearances, to Nelnet for processing along with any payments you may have submitted. 





Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation