Consumer complaint received 2024-12-20 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Co-signer
Company: Nelnet, Inc.
State: CA

Complaint narrative:
CFPB Complaint Regarding Nelnet Student Loan Servicing Subject : Complaint regarding Nelnet 's servicing practices and protection of cosigner rights Account Information : Account Number : XXXX ( Originally XXXX XXXX, changed to XXXX XXXX without notification ) Primary Borrower : XXXX XXXX Description of Issues : 1. Background I am the endorser/cosigner on a Nelnet student loan originally taken out for {$14000.00}. The current balance has increased to {$22000.00} due to multiple forbearances requested by the primary borrower without my knowledge or consent. I am equally liable for this debt, yet Nelnet has failed to protect my rights as a cosigner in several ways. 

2. Lack of Account Access and Information - Nelnet previously provided me online account access, which has not worked for at least 2 years - I am unable to restore my online access without the primary borrower 's involvement - Nelnet does not send me regular statements or account information - I must call Nelnet each time I need basic account information or to make payments - Nelnet claims only the primary borrower can restore my access, despite my equal liability 3. Unauthorized Forbearances and Balance Increases- The primary borrower has obtained multiple forbearances without my knowledge or consent - These forbearances have increased my liability from {$14000.00} to {$22000.00} - I have documentation of the primary borrower acknowledging obtaining forbearance without consulting me- I explicitly objected to these forbearances ( documented in messages from XX/XX/XXXX ) - I directly requested by phone that Nelnet not allow any forbearances on my loan group - Despite my explicit request and objections, Nelnet has continued to grant forbearances without my consent - Nelnet has disregarded my verbal instructions regarding forbearances on XXXX XXXX  - These unauthorized forbearances have significantly increased my financial liability 4. Credit Impact and Payment Issues - A failed payment attempt by the primary borrower in XXXX damaged my credit- I have had to make payments to prevent further credit damage - Most recently, I paid {$370.00} to protect my credit standing ( XX/XX/XXXX ) 5. Severe Servicing and Documentation Failures False and Misleading Information - In XXXX, a Nelnet customer service representative incorrectly informed me that : - The loan had been reconsolidated - My name was no longer associated with the loan- This information proved to be false, as I remain liable for the loan- This misinformation led me to : - Stop monitoring the loan status - Miss important deadlines or payments - Fail to protect my credit - Nelnet 's provision of false information demonstrates : - Poor training of customer service staff - Inadequate access to accurate account information - Risk of serious harm to endorsers through misinformation - Failure to maintain accurate records of endorser status - Nelnet does not have a current address on file for the primary borrower - The primary borrower 's profile is missing basic required information - There are incomplete records regarding attempted income-driven repayment plan applications- Nelnet continues to service the loan and grant forbearances despite lacking basic borrower information - Nelnet is making significant loan modifications without : * Having current contact information for the primary borrower * Maintaining complete borrower records * Having the ability to verify the borrower 's identity or circumstances * Obtaining cosigner consent * Ensuring proper documentation of loan changes - These documentation gaps raise serious concerns about : * How forbearances are being verified and approved * Whether proper servicing protocols are being followed * The legitimacy of loan modifications made without basic borrower information * Nelnet 's ability to properly service this loan while lacking fundamental account documentation - Despite these severe documentation deficiencies, Nelnet has : * Continued to grant forbearances that increase my liability * Processed loan modifications without proper verification * Failed to maintain proper records that protect both borrower and cosigner rights 6. Pattern of Non-Responsiveness The primary borrower : - Has not responded to messages since XX/XX/XXXX- Has ignored XXXX emails sent in XXXX, XXXX, XXXX, and XX/XX/XXXX- Has been non-responsive to attempts to contact both him and the loan beneficiary ( his daughter ) 6. Documentation I have preserved : - Text messages showing the primary borrower acknowledging unauthorized forbearance - Records of my objections to the forbearance - Documentation of multiple attempts to contact both the primary borrower and beneficiary - Payment records showing my contributions to prevent default Requested Resolution : 1. Immediate restoration of my online account access independent of the primary borrower 2. Implementation of a cosigner notification and consent requirement for all forbearance requests 3. Regular monthly statements sent directly to me as a cosigner 4. Clear written explanation of cosigner rights and protections 5. Review of all past forbearances granted without my consent 6. Investigation into why cosigner protections were not enforced 7. Establishment of direct communication channels for cosigners 8. Removal of all interest accrued during unauthorized forbearance periods, as these were granted without my consent and significantly increased my liability 9. Recalculation of the loan balance based on the original principal and only the interest that would have accrued without unauthorized forbearances Impact : This situation has caused me significant financial harm through : - Increased liability without consent ( {$8500.00} increase ) - Credit damage from the primary borrower 's failed payment - Necessity to make payments to protect my credit - Time and effort spent attempting to maintain loan oversight - Inability to effectively manage my financial obligations due to lack of account access I look forward to your review of these serious issues and await your response regarding the requested remedies. 

XXXX XXXX XXXX XX/XX/XXXX

Company response to consumer: Closed with explanation