Consumer complaint received 2024-07-25 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: Nelnet, Inc.
State: AZ

Complaint narrative:
I am writing to you as a concerned constituent, graduate, and advocate for students who have attended XXXX XXXX XXXXXXXX XXXX XXXX XXXX ( XXXX ). I am requesting your support in initiating a group discharge of federal student loans for these students, based on significant evidence of misrepresentation and misconduct by the institution. XXXX was an acquisition to XXXX in XXXX. XXXX was found guilty of widespread substantial misrepresentations from XXXX resulting in group discharges for nearly XXXX borrowersXXXX XXXX XXXX XXXXXXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX The following points outline the substantial issues experienced by XXXX students, demonstrating a pattern of misleading practices and financial exploitation : Misrepresentation to Student Borrowers XXXX  grossly inflated the return on investment for their education.

The use of Income-Driven Repayment ( IDR ) plans was promoted without adequately informing students of the severe interest accrual, resulting in inflated debt.

Students were pressured into taking maximum federal and private loans, with tuition rates increasing continually. To justify the cost of the education XXXX stated it was due to inflation. 
There was a period when federal funding was unavailable, forcing students to rely solely on private loans. 
XXXX forced students to sign for loans and if they did not comply the institution threatened to revoke their student Visas. 
XXXX relied on IDR to make the schooling affordable. XXXX XXXX XXXX XXXX XXXX XXXX  ) were invited by XXXX  to discuss how students could afford to pay an astronomical loan amount. The solution painted by XXXX XXXX  was put into a positive light : pay under IDR every month and after 25 years the remaining balance would be forgiven. However, it was never mentioned that the minimum payment on an IDR plan would not match the accumulated interested, let alone the principal, and interest would continue to accrue. Capitalization of the interest leads to the loans skyrocketing over 25 years, and the forgiven amount is atrociously higher than the principal amount. This amount is to be forgiven, but XXXX students were not informed that the amount would be taxable income. There are several students with over {>= $1,000,000} in debt that would be taxed upon forgiveness. 
The founder of XXXX XXXX was XXXX  to XXXX years in XXXX  for fraud in XXXX. 

Misrepresentation of XXXX XXXX : Students who graduated were advised that they would be grandfathered into XXXX XXXX XXXX XXXX ( XXXX ) XXXX. This would eliminate the need to take the XXXX  for the XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX  and XXXX XXXX for XXXX XXXX XXXX XXXX XXXX XXXX examinations to be able to practice in the United States. The students who graduated before the accreditation took place were not grandfathered in. XXXX XXXX XXXX XXXX XXXX ( XXXX ) promoted the passage of the XXXX XXXX XXXX XXXX of XXXX, even though the stipulations require the candidate to be from an XXXX accredited school. At this time XXXX was not an accredited school. As a result XXXX  alumni who are not under the XXXX accreditation are not able to apply, even though they were told they would be allowed to. XXXX had limited XXXX accreditation from XXXX which was not disclosed to students. Misrepresentation about Caring for Students : XXXX has a 20 % attrition rate vs the schools in the United States that have a 1 %. XXXX admitted 165 students in the fall of XXXX but when students were to enter their clinical year there were only 90 spots available. To obtain this 45 % of the students had to fail. 
XXXX XXXX XXXX XXXX  Some XXXX XXXX  had trouble transferring credits to XXXX XXXX veterinary schools. XXXX failed to provide adequate medical care to students. Many students reported feeling unsafe, and the university 's response to these incidents has been inadequate, further exacerbating the distress experienced by the victims. Misrepresentation of Time to Degree : XXXX advertises a " three-semester calendar year, '' which creates a misleading perception of a shorter time required to obtain a degree. In reality, due to the high attrition rate, many students end up repeating semesters, which significantly extends their time in school and leads to higher debt loads. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Misrepresentation of the XXXX  XXXX XXXX : XXXX offered a XXXX XXXX XXXX  in order to see if a prospective student would be able to handle veterinary school. If they passed this semester they would be granted admission to first semester Many students in XXXX XXXX  had higher GPAs and more hands-on experiences that surpassed those who were directly admitted into the first semester. For this program students were not eligible for Federal loans. XXXX XXXX XXXX XXXX XXXX to XXXX XXXX XXXX Once prospective students received their acceptance letter there was significant pressure put on students to accept offers quickly and take on the substantial student debt. It is rumored that recruiters were receiving incentives to increase admission numbers. Prospective students were unable to defer to the next semester and instead told they must reapply. Prospective students were encouraged to take undergraduate exams early and monetary incentives were given to fill in semesters with low enrollment Given these substantial grievances, it is clear that XXXX has engaged in practices that have caused significant financial and emotional distress to its students. This is proven by XXXX being part of Exhibit C for the XXXXXXXX XXXX XXXXXXXX case. I urge you to support a group discharge of federal student loans for these affected students. This action would provide much-needed relief and hold XXXX accountable for its actions. Thank you for your attention to this critical matter. I look forward to your support in advocating for justice for these students.

Company response to consumer: Closed with explanation