Nelnet review: scam and cheating 74

I was told that I needed to make 36 consecutive on-time payments to NelNet after my consolidation to receive the incentive program. I was offered a 1% rate reduction or a 3.33% principal reduction once I met this requirement. I chose the 1% rate reduction, which due to my consolidating with my wife's loans was apparently not easy for them to input. I spent 3 years calling in to make sure that it was set up for the 1% rate reduction (which every time I would hang up under the impression that it was, but the next person would tell me it wasn't) and everything was going along as it should. To my surprise, in month 35 when I called in, the representative, for the first time in 3 years, told me that I do not qualify for the incentive because I did not sign up to recieve e-statements within 30 days of consolidating. They are a sham and I want to be involved in any effort to raise awareness to this issue.

I too was offered 3.33 % interest rate reduction or 1% rate reduction after 36 consecutive on-time payments. I had expected it to automatically take place. I spent 30 minutes on the phone and even spoke with a supervisor. They said that I did not sign up to receive e-correspondence. I told them that the clause was ridiculous and absurd. I signed up for e-statements 3 years ago and thought that was enough, but they said the e-correspondence was different. I am going to fight this - as I plan on taking the issue to as many places as possible. It may take some time, but I am furious with this company for implementing such a ridiculous clause. I asked them for documentation showing this clause. Next I will write a letter and explain that I am taking it to the Better Business Bureau.

Hopefully they will apply the reduction, but I don't plan on stopping. If my formal complaint doesn't work, at the very least I can make people aware of their sham. I will make them aware of their statement ..."Accurately represent Nelnet always and never mis-sell or misrepresent Nelnet products or services: we must comply with laws, regulations and Nelnet standards on mis-selling and advertising." You can find this statement on their website. They clearly are mis-selling and misrepresenting themselves with this clause.

I also have the same problem. I decided to have the 3.3% principal reduction, and although I'd called consistently the past three years to make sure I was on track to receiving the benefit, right before payment 28, I was told I was disqualified for not having signed up for e-correspondence. I have since spoken to two escalation agents and written a formal letter to Nelnet. I included the offer I used to consolidate with Nelnet (which clearly states that Nelnet only required 30 initial consecutive payments and maintenance of a valid email address) and a snapshot of a borrower benefit screen that also shows me as disqualified for no reason but also showing that Nelnet only required 30 initial consecutive payments and maintenance of a valid email address. I hope this gets resolved, and am willing to sue for breach of contract.

I doubt a reputable company such as Nelnet is scamming anyone. I would say that the fine print wasn't read and the recession has nothing to do with honoring their customer's incentives. It still sounds to me like none of you have a clear understanding of what you were obligated to do and I'm sure this information was presented to you at the time of signing of for the loan.

I have loans with this company and have nothing but good things to say about them. If you don't like it then go get your loans through the department of education who offers you no chance at any incentives. At least Nelnet is a company that gives back to its customers, who do what they are obligated to do.

I went over my paperwork and screenshots and have found that if I didn't sign up for e-correspondence it informed me that I would forfeit all benefits of this program. All in all it is the consumer's responsibility to do what they need to do. Quit trying to mud sling a good company. If you don't like it give back your education that they funded and go work at a McDonalds. You didn't follow directions so take responsibilty and act like an adult and pay your loans back.

You people make me sick. As far as sueing, let me know how that turns out. I work in customer service for another reputable company and found that you people who are sue happy have no idea what you are talking about. I encourage you to sue Nelnet and to see where that gets you. Please keep us posted on how your lawsuit is going.

I am also having a problem with this. I sent an e-mail to the company and got a reply stating I was currently on track and all I needed to do was make a couple more payments and my 3.33% reduction would be put into effect. As I made the necessary payments I contacted the company again, but this time they told me I did not sign up for the e-correspondence and I am now disquallified. I looked over my contract and found nothing about e-correspondence, and from the time I sent my intitial email until now I have never received any paperwork mandating that I sign up for e-correspondence to receive my incentive.

I agree with you, hpackard. I have received my 3.33% principal balance reduction on my Nelnet loans. I, too, have retained all of my paperwork and it clearly states, "Must meet the following borrower qualifications: 1.) sign up for e-correspondence within 90 days of the first disbursement and manage the account online at www.nelnet.com 2.) Maintain a valid e-mail address and receive e-newsletters about financial literacy for the life of the loan, 3.) make all payments on time (no more than three days past the scheduled due date) throughout the life of the loan…”

I'm not quite sure how clearer it could be. This world does seem to be coming to a place where nobody takes responsibility for their own actions. Where does the sense of entitlement come from? I appreciate my education and the lenders who participate in providing federal funding to students such as myself. For those of you who are complaining how Nelnet has not been able to provide you proof of the qualifications, have you been able to produce proof that you were NOT advised of them? I'd be happy to loan you my documents I have saved, but you aren't going to be pleased with what they say.

I just had the very same problem. I consolidated my loans five years ago and have resisted putting them in forbearance, despite the fact that my husband and I can no longer afford to keep an apartment, in order to meet the payment requirements for the 3.33% principal reduction.

Then today I'm told that I don't qualify because I didn't sign up for e-correspondence. My question is how the hell can they say I didn't sign up for e-correspondence when they've been e-mailing me for years!?

I don't know about you, but I feel like I've been left out in the rain.

I'm pleased to see I'm not alone. I'm having the same problem, Nelnet will not live up to what they advertized. I sent a complaint to the Nebraska Attorney General and they have been somewhat helpful. Nothing has been resolved but if everyone notified the AG perhaps there would be success for all if enough folks complain.

Pat

I had the same problem; there are many people who have received this treatment as indicated by their canned and well rehearsed response.

I too complained to the Nebraska BBB and AG; the BBB was a joke but the AG seems to be looking into it. Still waiting.

Dave in TN

hpackard,

Just because you disagree with the people on this forum, does not mean you have to hate them... "you make me sick". While I do hold strong feelings against Nelnet it doesn't mean I hate their employees. I am just against "the man". The same man who is buddy buddy with the President of the National Association of Attorney Generals. You know who I'm talking about if you've done your research, which I have.

This isn't about law suits.

It's about forcing a student loan company to comply within the rules, and to honor the contracts made. My case is very clear. I have a certified paper trail where they dropped the ball and did not honor my deferment. This has placed me in a situation where I cannot finish my degree now, thus making the rest of my student loans go into default!

What about people like me? We're sue happy?

Let me tell you, the process of a law suit is no joking matter! It's not as easy as people think it is. Don't you think for one minute I would ENJOY a lawsuit! Never! Who has the time or waste of resources for a lawsuit?!

I don't believe in frivolous lawsuits! I believe if every other resource has failed to change the vices and ways of the corrupt big corporations, then money talks. Speak their language and maybe, only slightly, possibly then will they listen.

I have complained to Nelnet for incorrectly handling extra payments made towards principle. Nelnet's approach to paying extra principle has changed over the years, and currently (2009) it is virtually impossible to make extra principle payments that end up recorded properly in their system.

In the current Nelnet system extra principle payments by default "extend the due date", and if you request that the due date is not extended (which can only be done by a paper payment, not online), the current amount due is usually calculated incorrectly.

A few years ago when making paper-based princple-only payments, I chose to not extend the due date, and the due date was still advanced (advanced by 4 years, because the amount of principle I paid). When calling Customer Service to make the adjustment, the CCR brought the due date back to current, but then refused to make the appropriate balance-due adjustment. Talking about interest and time-value of money to Nelnet's Customer Service and Customer Service management was a fruitless effort, and I considered the money lost to greedy management who manipulate the commonly misunderstood concepts of interest and principle to their own advantage.

FYI, Anyone who lends money is primarily concerned about one item...making the most money possible.

Back when I worked for Nelnet, the 3% after 30 was explained to us as follows:

Borrower must make 1st 30 payments on time ("on-time" meant up to 3 days late).

Borrower must agree to go completely paperless when it became available, and when it became available borrowers would get notice at the email address they provided on their consol app, and would have so many days (like 90 I think) to sign up in order to retain the benefit.

Borrower agreed to notify us of all changes of email address.

Borrower agreed that 2 bounced emails would disqualify them from the discount, and put them back on paper billing.

Borrower agreed that any payment received a over 3 days late would permanently disqualify them from the discount.

They were extremely careful to disseminate this information to us VERBALLY.

cod,
that may be how it was explained to those who worked for Nelnet, but that is not how it was explained to us (the lowly borrower). The explanation was given over the phone and you had to make your decision at that time (not think it over and decide later). Your option was to e-sign the application, after 36 on-time payments your interest rate would be reduced by 1%, if you elect EFT payments your rate would be reduced another .25%.

I have made 40 on-time payments and am still waiting. I have made three phone calls, talking to three different people, who have three different explanations. Each one has agreed that I have made more than 36 on-time payments and they all have forwarded my request to the research department where someone will contact me. It has been over three months and I am ready to contact my state representatives and the local news to file a complaint.

Just got off of the phone with these cheats. THE EXACT SAME THING HAPPENED TO ME. Spoke with a Brittany /last name removed/. No one ever told me of this "correspondence button". Such ###.

I just got ripped off by Nelnet as well. I started to notice that on each billing there was a late fee charged. When I tried to ask why, I was told they would have somebody respond to me. No one responded and I filed a complaint with the information below. Within a half hour nelnet called. They said they didn't receive a payment. I told them I had check statements that would prove otherwise. When I did the woman who called laughed and said if can come up with one she would remove the late charges. Low and behold one check never appeared on my statements. After filing the complain I never received a bill for several months. This makes me even more suspicious. The woman who responded from nelnet is Jill Warner- [protected] or fax [protected].

For More Information or to File a Complaint with the federal people call the ombudsman below.
Notify the Federal Student Aid Ombudsman at [protected] or www.ombudsman.ed.gov if you have a complaint that you cannot resolve with your lender.

To learn about federal student loans, write the U.S. Department of Education at:
U.S. Department of Education
Federal Student Aid Information Center
P.O. Box 84
Washington, DC [protected]
800-4-FED-AID (TTY: [protected])
www.FederalStudentAid.ed.gov

If you are having problems with Nelnet Ithink we all need to sign a petition of some kind. My son applied for Forebearance and was in school yet, they defaulted his loan, all of the contact numbers they give me are bogus, even the letters they send that say contact info. is incomplete.

HELP! Please email me at Skysky1.5@gmail.com WE REALLY NEED TO FIGURE OUT WHY THEY ARE NOT DOING THEIR JOB!

I agree that Nelnet does misrepresent their offer of 3.33% principal reduction if you are enrolled with ecorrespondence, keep a valid email address, & make 30 on time payments. They send you an email saying that your Consolidation Loan has been finalized, leading you to think that you are signed up for ecorrespondence, when really you must fill out some other form to be signed up for ecorrespondence.

Is it possible to transfer your loans as a simple means of protest?

Nelnet ruined 2 years of my life and got me kicked out of a medical program I had spent over $60, 000 on over eight years. Ultimately they put me in a situation where I was forced me to change majors all because they refused to grant me a 6 month forbearance after a hurricane. NELNET refused even though I am a diabetic with children and a disabled wife. I called them many times. They claimed that they never knew I was in a crisis after the hurricane. NELNET is WALL STREET TO A --T-- if they could have evicted me and my kids they would have. Sallie may had no problem with granting me the forbearance but NELNET made it to where the college had to refund all the loans ---$13, 0000 worth because NELNET suddenly listed me as in default while I was in school only eight months after my last semester. Then the school paid me all my aid, but when it found out at the end of the semester that I was listed as in default, the school wrote off their losses and cleared me out of their system as they expelled me because of all the problems it had caused the school. NELNET did this because I had to take 2 semesters off when we lost our house and I had to rebuild my home. They were looking for a reason to force me into consolidating with the government. They are BAD NEWS.

Nelnet takes advantage of its customers at every opportunity.

Well I did sign up for e-correspondence within the specified time frame, and autopay, and I let it go on autopilot for 12 months or so. When I did log in, imagine my surprise to see that I had been disqualified from the 3.33% Principle repayment benefit... supposedly for not enrolling in time. When I called and was able to prove my timely enrollment, they apologized and re-enrolled me, but how many other people have not caught this?!? It's their formula: If only 10% of the people notice and complain, then we can keep 90% of the money.

I checked back at one point and had 23 qualifying payments... checked back today at what should have been 31 and - surprise - somehow I only have 13. Mind you, it has been on autopay the whole time and every payment has gone through as planned. Now they're telling me that my income-contingent payments don't qualify. Why is this the first I've heard of this?!? Apparently they qualified at some point because I was up to 23. I shouldn't be surprised. I hate this company. (and this is only one example of the frustration I've experience with them).

interest being charged

Today I recieved a call from Nelnet saying that I had not paid my loans, even though I have the receipt not four feet from me saying that I did. Who should I believe?

I am also having the 3.33% principle reduction argument with nelnet. They claim my reconsolidation lender didn't offer it, even though I have emails stating it does. I guess I'll just have to pay this thing off.

For those of you who actively monitor your Nelnet account(s), did you notice anything fishy happening with accrued interest during May 28 thru June 1, 2010? If you didn't notice I will tell you that Nelnet didn't post daily updates to borrower's account like they normally do.

On June 1 and into the morning hours of June 1, the system was only showing accrued interest thru May 28. Then after the extended Memorial Day weekend, and presumably after their staff returned to work the system was slowly updated throughout the day on June 2.

However, their accrued interest calculations are wholly incorrect. How do I know that? Well, the days leading up the May 28, my accounts were accruing interest at $0.64 per day. From May 29 - June 1, the daily interest chargers suddenly and unexplainably surged to 3-times the correct amount.

Then on June 2, it went back down to accruing at $0.64 per day -- the proper amount. I notified Nelnet of the situation and as usual, they were arrogant as can be. Despite me proving my claims, they refused to adjust my account.

And let it be known that this instance is the umpteenth time this sort of thing has happened since I've been monitoring my accounts on a daily basis over the past 8 months. I have countless numbers of printouts from my online account that prove my case. Separately, I have crafted an Excel spreadsheet that calculates the interest every day, so I know when Nelnet is and isn't making errors. Sadly, Nelnet is making a lot of errors, yet I would never have know if I wasn't tracking it for myself.

I've had enough of their nonsense and ineptitude, so I have filed a 64-page formal complaint along with my documentation of all circumstances to the Dept. of Education via certified delivery receipt. Early next week, I am set to meet with a major law firm to become a whistle blower and initiate the proceedings for a class-action lawsuit. It only takes 2 people to initiate class-action suits, and finding a 2nd local person to join me was cakewalk.

All told, Nelnet has over-billed me in excess of $40 -- all of it due to miscalculating interest charges. Not a single cent of it is attributed to me being late or having some sort of miscellany fees imposed because every month I have paid early or on time 100% of the time and my payments are always way more than the minimum amount due -- often times 6 to 24 times the minimum amount due so my next due date is multiple years into the future, yet I still pay every month and more than the minimum.

I suspect tens or hundreds of thousands of borrowers are being similarly treated with miscalculated interest. Meanwhile Nelnet is quietly mis-billing interest charges then raking in the payments from unsuspecting borrowers -- all while Nelnet ignores the problem. They are simply pocketing the extra interest charges as profit -- something they never rightfully earned in the first place.

Enough is enough.

I can believe Nelnet is over-billing on interest. I am sure I was only one of thousands to over pay. Unfortunately I never invested the time to track all the "book-keeping". I recently just paid off my student loan (early): after 14 years of payments, my original loan principle of $29K was only down to $22K. I've tried over the past couple of weeks to call nelnet to talk to a customer service rep and I can never get to one through their automated phone menu. I would not advise anyone to use Nelnet as an educational lender. I hope there is a class-action lawsuit and there is some restitution for the many hard-working people who were taken advantage of by Nelnet.

Yeah, we had similar "communication" problems. Mostly their lack of communication. My wife has a set of Nelnet consolidated loans which she setup automatic payments for. When they first consolidated the loan they did not disclose the fact that the minimum payments were interest only. She realized quickly and setup automatic payments for interest plus $100 in principal a month. It was going fine for about 1.5 years then it stopped. My wife and I had our daughter so we assumed everything was fine and we noticed regular withdrawls for the next few months, but it was interest only. Then in a few more months the payments stopped all together. Shame on us for not noticing, but the automatic withdrawl agreement clearly states that the terms and continuance of the withdrawls cannot be modified or amended without written authorization from the borrower. Needless to say we had thousands of dollars accumulated in extra interest and all the principal payments were totally negated. When we called and asked, one of there reps was kind enough to tell us he was quiting because of all the scripted responses he had to tell borrowers when they called to complain. We just got tired of calling in for excuses and escalations to managers that never resulted in anything. We'd love join any lawsuit to reclaim the lost interest and principal paydown we could have made.

I worked for Nelnet. When I was let go without any severance or notice, the HR reps comment was
"What can I say? We work for a horrible company!"
Trust me, they treat their employees worse than their customers and I will never be a customer of theirs.

I work with a company that does default managment for several schools and on a daily basis we work with Nelnet and I must say they are a JOKE. I have has several students whom they put more effort into the student defaulting on their loans then helping them keep current and stay active. Not one but two reps at Nelnet told a student that they defaulted on the loan but when they spoke with the guarentor on the loan they were told it is still with Nelnet and the default has nto been paid yet. Their reps are trained to confuse and give students the run around so they can say they gave due diligence when they default. If there is a problem with paperwork submited Nelnet does not even call the student to tell them, they let sleeping dogs lie and wonder why students yell when they acctually get someone on the phone.

Well the SCAM just keeps going! I just called because I saw that I was disqualified for my 36 payment discount offer. They listed my disqualification date as: 9/2008. I was in DEFERMENT at that time.

I called and first verified that my account was in deferment at the time, then brought up the issue. I was told that I was disqualified for late payments received in 2006! They said that my first three payments were late! I have no way of verifying when these payments were actually received, since I closed that old account years ago. I thought I was fine all along. I asked him: why it took TWO YEARS for them to disqualify me. No answer.

I am so angry. I want to join any action anyone is willing to take. Who can we turn to? Where do I complain?

I was told the same thing years ago. I have been on the phone with them a dozen times trying to get something in writting. The paper work the send no one can figure out. I am suppose to be on an auto repay that will pay my loans off in under 10 years. From what I am readng on-line it doesnt sound like that is what thr real deal is. I wish i knew how to get in english that someone could understand.
I dont have a court case but it sounds like there should be a class action law suit against them. I am willing to submit info if it would help.
angelmcnamee@yahoo.com

I had the same thing happen to me. I signed up to receive the 3.33% principal reduction and counted the months until I had made my 36 ontime payments. After completing the payments I expected something to happen automatically but it didn't. I contacted Nelnet and learned that I had "not signed up to receive electronic notifications." I called and spoke with several representatives and appealed the decision. Still pissed about this scam. Just got off the phone with them again this morning! Have any of you been able to overturn the decision?

I am a 100% disable veteran, I fax Nelnet a form that I gotten from the VA.They still refused my paper work . telling me they need the oreginal signature on the forms .All I have is what the VA worker gives me. Its just a crock of bull .Im In on a class action if anayone else wants to.JAMES

I graduated 2003 and I have made every single payment on time through Kwikpay.

Last year I tried to switch bank accounts on their website and it got all screwed up so I lost my incentive, through no fault of my own.

I just noticed this recently and called them up to demand them to lower me back down...of course they said there is nothing they can do...I told them to take a hike, I'm paying off my school loan...I don't want to give this company one more dime in interest.

They suck

Be very careful if you ever have to change your automatic withdrawal...I think they screw it up on purpose.

Does anyone know if there is a lawsuit started? If so, I wouldn't mind adding my statement in. I think I made my final decision have my bank do a transfer transaction and pay NelNet off and I will just make payment to my bank. I trust my bank 110% more than I can with NelNet.

I have been with Nelnet for awhile. My interest payment keeps going up as I pay off my principal. How could this be... I would love to join in the law suit. Did anyone start it yet? Also, does anyone know how I can change the lender? Any recommendations?

This is the problem with the government managing anything. There is no one to complain to and no one to hold them accountable. All of my loans were with Wells Fargo, where I do all of my banking. They actually have customer service. They don't want to lose their customers, so they are easy to work with. Then I got a notice that the Dept. of Ed. bought my loan (no one ASKED me if I wanted to move my loan). Then Nelnet bought it, and all I have had is problems with them. It is extremely frustrating, and we (the customers) have no say or advocate on our side.

As many before...lots of issues with Nelnet practices. Here is a solution: Contact the NE Attorney General's office in Lincoln, NE (headquarters of NelNET). Individuals can file an individual complaint and the supervisor assigned to the student loan complaint division will walk consumers thru the mediation process with Nelnet customers. One item to note (and I learned the hard way) you have to SPECIFICALLY REQUEST your payment to go to the principal otherwise (most, if not all) will be applied to the interest. Although disgusting this is true. Send the letter of request (i.e payment to go directly to principal) via certified mail so you have written documentation NELNET received the request. The following is a link to file a complaint with the NE AG office. http://www.ago.ne.gov/consumer/forms.htm This is a morally bankrupt institution. You can also call the attorney general's office and they can mail a form to you. [protected]. GOOD LUCK and don't give up!

O.K. so now the next scam... Our son is freshman this year. Loan cost 4 points + 7.9% interest. We were told if first 12 payments were on time, $154 would be refunded. I have been trying to find out who we are supposed to pay and when payments begin... finally, last week was told Nelnet is the lender. Called Nelnet to find out when and where to send payments and they said 1st payment was late. That it was due February 18. It was the 25th of Feb. We had never received any statement or notice of any kind. Didn't even know who Nelnet was. We signed up on line, while on hold, created password etc. First clerk said that they had sent 5 notices to email and they were posted on online account. Sure enough, they were online, only we had never set anything up any account until we were on hold..didn't know who they were. 2nd clerk stated that the statements were not emailed, they were sent via usps. WE NEVER received anything. When asked who set up our account they said we did, back in Sept. 8. This never happened. We never set up the account, didn't have a clue who they were. We never received ANYTHING from Nelnet saying what was due and when. Went ahead and made Feb. & Mar payment over the phone and asked about the $154 rebate. They said sorry, you are 7 days late on your first payment and you can't be more than 6. Clerk said the govt. doesn't just "give away free money" Free?! really? Didn't they just take that from our account? Placed a call into U.S. Dept of Ed. Someone there took our information and said someone would call. When we asked when the loan was sold to Nelnet, they said they could not tell us but the rep might be able to do so. Ironically, immediately after making phone payment, we received confirmation via email, AND just received first ever paper correspondance (invoice) for February and March payment...postmarked Feb. 28 and dated Feb. 25th, the day we called them. It is not the $154, it is the principal. Someone is bilking students and consumers out of millions, yes MILLIONS! I just found that another whistle blower case just yielded a settlement of 55 million from Nelnet. AND THEY HAVEN'T LEARNED...clearly neither has the Dept of Education! I am in and willing to blow this out of the water! Please, anyone interested, or if this has happened to you, contact me hcornwell@entitleescrow.com