Quick Answer: A CFPB complaint reveals Nelnet sends misleading payment confirmations even when transactions fail to process, allowing interest to accumulate while borrowers believe payments succeeded. The servicer provides no follow-up notifications about failed payments, potentially costing borrowers significant money in accrued interest.
Date Received: 2017-12-11T00:00:00
Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
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Consumer Complaint: I ‘m being misled by my student loan servicer. They ‘re named Nelnet. Here ‘s how Nelnet misleads people : 1. You make payments online – in my case I ‘ve made four payments online over the past three months.
2. You get an email confirming your payment – The emails literally say ” Thank you for your payment. ” They show the payment amount, payment date, even the routing number and account number. I got these confirmations every time. All information listed was correct in each case. I know because I checked with my bank and with Nelnet.
3. This confirmation email is meaningless and misleading because you get them even if your payment is n’t processed – For reasons neither Nelnet or my bank could explain, none of the payments were processed.
4. No follow-up email is sent to alert borrowers that their payment was not successfully processed – again, incredibly concerning and misleading.
5. Meanwhile, interest on your loan keeps piling up even though you think you ‘re paying off your loan – Nelnet benefits at the figurative and literal expense of borrowers like me trying to do the right thing.
6. When I realized what was happening, I immediately made Nelnet aware. I asked for the interest to be waived. Nelnet refused saying that it was ” impossible. ” To recap : I paid my student loan payments to Nelnet online. They sent me confirmation emails that said ” Thank you for your payment. ” Yet they never received such payments. And they never told me that my payments had not been processed. Meanwhile, interest accrued.
Company: NELNET, INC.
State/Zip: MD 217XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 2752323
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