National Student Servicing – Consumer Complaint – July 29, 2014

Consumer Statement:

About 2 weeks ago, I opened my email and found information regarding how I could reduce my student loan debt.

I called the toll free number and was put in touch with National Student Servicing in Irvine California. I talked to a person by the name of Cory Perry. He stated to me that the government would buy my student loan, I would pay a low monthly payment and there would be no interest charges. I followed his instructions and forbearance paperwork was submitted to Sallie Mae, the student loan company I was making payments to.

I even saw a commercial on TV making the same claims that Cory was telling me.

Within an hour of conversation, I received in my email inbox the electronically generated forms with an electronic signature stating that I would make 3 payments of $199 for June, July and August automatically debited from my checking account.

After that my payments would be between $130 and $140 a month. I asked Cory if this was a promissory note and he said yes. So I thought that this company was a student loan debt servicing center and I would have my student loan restructured with the lower payments.

Last week I receive paper work from FedLoan Servicing stating a repayment plan. I was shocked to see that the repayment plan was nothing I agreed to with Cory over the phone.

So I called FedLoan and talked to a person named Jenny, and conveyed to her what I was told by National Student Servicing. After listening to her, that is when I realized that I was scammed. I have another student loan that is being serviced through them, and they have been very up front by providing statements and explanations regarding how much is owed, the interest and the payments.

Consumer Action Taken:

After talking with FedLoan, I tried to find National Student Servicing on the web. I did find a company with that name, in Irvine California. There was a toll-free number to call. The call went through to a menu. When the recording got to telling what number to push to talk to a customer service representative, the call was dropped; no answer.

I have been trying to find the piece of paper I was writing information about the person I was talking to, and finally found it today. The name of the csr I was talking to was Cory Perry (not sure that is his real name) The phone number I have is 949-381-2464. I know you may have heard this before, but after talking to Jenny at FedLoan, I felt sick to my stomach.

I sent an email to the company I thought I was dealing with to cancel my account with them and not to debit any more money from my checking account. As of today, I have heard nothing.

Date This Problem Happened: July 9, 2014

State You Live in: Pennsylvania

Race/Ethnicity: White

Age Range: 51-65

Total Amount of Fee Paid: $199

Company Name: National Student Servicing

Company Address:

7535 Irvine Center Drive
Suite #200
Irvine, CA 92618

Company Telephone Number: 855-677-6405

Website of Company:

Client Supplied Information

Consolidation Agreement

Federal Student Loan Consolidation Agreement

This Service Agreement is made and entered into this 11th of July 2014, by and between National BPO, LLC (NSS), and [ ], hereinafter referred to as student (“Student”) residing at [ ].


WHEREAS NSS business is providing Document Processing Services to individuals with federal student loans and seeking to consolidate the loans through programs offered by the Department of Education (DOE); and

WHEREAS Student requests NSS to perform in good faith, the following services, (“the Services”): (a) Research potential DOE programs that are/or may be available to Student, (b) Present results to the Student with available options, (c) Compile and process all Students’ required DOE Consolidation paperwork selected from the options provided to Student, and (d) Submit completed Consolidation paperwork to the DOE.

*Student also acknowledges that they have been advised that any and all programs offered are free, and they have the ability to complete all such program requirements for themselves.

*NSS is not affiliated, partnered with or associated with the DOE (Department of Education) in any way shape or form. NSS is a third-party document processing company that specializes in Federal Student Loan Consolidations, and Rehabilitations for such students.

In consideration of the foregoing and every term, covenant and condition hereafter set forth, NSS and Student do hereby understand, covenant and agree to the following:

  • Provide Complete and Truthful Information. Student expressly represents and warrants that he/she/they will at all times, provide NSS with information that is complete, accurate and true to the best of their knowledge and belief.
  • Performance of Services. Information from Student and payment for the Services as provided herein, NSS shall analyze Students’ information, including annual income and perform any necessary research at sole discretion; reasonable or advisable in carrying out its duty to service the student’s, student consolidation. Outside

    Providers: Student understands and agrees that NSS may at its discretion; utilize the service of outside service providers to assist NSS with Services. Should an Outside Provider be utilized, the Outside provider will be required to comply with NSS’s privacy policy.

  • No Legal or Tax Advice: The Student acknowledges that the NSS is not a law firm, and that NO LEGAL OR TAX ADVICE CAN OR WILL BE PROVIDED UNDER THIS AGREEMENT.
  • Fees: Student agrees to pay NSS a Consolidation Processing fee totaling $599.00 and thereafter, a monthly maintenance and administration fee payment of $28.80. National Student Servicing cannot guarantee a specific payment amount. Monthly reoccurring fees run concurrently with the rehabilitation payment schedule arranged between collection agency and borrower. After the rehabilitation is complete, loans are then released to the department of education at which time the consolidation can be completed. NSS Fees will only be earned after Student is approved for a program through DOE. If Student is not approved for a program through DOE, NSS will reimburse 100% of any Students’ Fees collected.
  • Breach of Contract: In the event that this contract is breached in any manner, including but not limited to the Student failing to pay the agreed upon fee payment. NSS reserves the right to discontinue Services for Student. In a timely manner, NSS will respond to all Student requests to terminate the Program. Any request to terminate the Program must be in writing mailed to National Student Servicing 7535 Irvine Center Drive Suite #200 Irvine, CA 92618
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Money Back Guarantee

Limited Money Back Guarantee. National BPO guarantees that Client will receive a Federal Student Loan Consolidation, or a repayment plan using current lenders, through the Department of Education subject to the following conditions:

(1) student loans that Client presents to National BPO are original debts, and have not been previously consolidated or had their terms or amounts previously adjusted;

(2) Client fully cooperates, is honest and timely in providing all information requested by National BPO and Department of Education; and/or

(3) Client does not possess a characteristic that pursuant to Department of Education rules would disqualify Client from receiving a consolidation. If a Client is not approved for a Federal

Student Loan Consolidation, or a repayment plan using current lenders, through the Department of Education after reasonable efforts by the parties, then National BPO will reimburse the Consolidation Fee Payment (payment made to National BPO in Section 3, above). All refund requests must be made, in writing, to National BPO 1 League #61089 Irvine, CA 92602 within 90 days of any denial by the Department of Education.

Cancellation Policy

Within 24-hours of an executed signed contract, the CLIENT may cancel this contract with or without reason. After 24 hours has passed from the executed contract date there will be NO refunds. 24 hour cancellation period (B&P 6410(e)). B&P = Business and Professions Code


If any of the CLIENT’S Federal Student Loans are in default; and or the CLIENT is being garnished by a LENDER, NSS cannot stop a garnishment already in progress, and makes no guarantee to do so. NSS will provide CLIENT the option to rehabilitate said loans. Once the rehabilitation process is complete, NSS will immediately Consolidate the CLIENTS Federal Student Loans through the Department of Education.


Once Student’s paperwork is received the processing process will begin. All services performed by NSS are controlled, and time managed to expedite the consolidation process. Be advised that Federal Student Loans completed by NSS rely on respective lender(s) promptness in their administration of services; and therefore, cannot be held liable for any delay in completing a consolidation. The Average time to complete a Federal Student Loan Consolidation through DOE takes approximately ninety (90) days.

Information Authorization

I hereby authorize NSS to verify my present employment earning records, bank accounts, stock holdings, and any other asset balances that are needed to process my Federal Student Loan Consolidation. I further authorize NSS to order a consumer credit report and verify other credit information, including past and present mortgage and landlord references. It is understood that a copy of this form will also serve as authorization. The information NSS obtains is only to be used in the processing of my Application for a Federal Student Loan Consolidation.

Arbitration and Choice of Law: This Agreement shall be governed by the laws of the State of California, and any Conflict of Law provisions thereunder. In the event of any controversy, claim, or dispute between the parties arising out of, or relating to this Agreement, the parties agree to resolve all issues solely through the use of binding Arbitration; governed by the rules of the American Arbitration Association (“AAA”). Any such Arbitration shall take place in Santa Ana, California. The arbitrator shall be neutral, independent, and shall comply with the AAA code of ethics. The arbitrator or arbitration panel shall have the exclusive and sole authority to resolve any dispute relating to the interpretation, applicability, enforceability, conscionability or formation of this Agreement and of this arbitration requirement. The award rendered by the Arbitrator shall be final; binding on all parties; and not challengeable or subject to vacation or modification. Judgment on the award made by the Arbitrator may be entered into any court having jurisdiction over the parties. If either party fails to comply with the Arbitrator’s award, the injured party may petition the Circuit Court for enforcement. The parties further agree that either party may bring claims against the other only in his/her, or its individual capacity and not as a Plaintiff or class member in any purported class action or representative proceeding. Further, the parties agree that the Arbitrator may not consolidate proceedings of more than one person’s claims, and may not otherwise preside over any form of representative or class proceeding. The parties shall share the cost of Arbitration, including attorneys’ fees, equally. In the event that a party fails to proceed with Arbitration, unsuccessfully challenges the Arbitrator’s award, or fails to comply with the Arbitrator’s award, the other party shall be entitled to costs of suit, including reasonable attorneys’ fees for having to compel Arbitration or defend or enforce the award. This section and the arbitration requirement shall survive termination.

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Entire Agreement, Severability, and Survival: This contract shall constitute the entire Agreement between NSS and the Student relating to the Document Processing Services provided hereunder. No additional outside written or verbal terms, obligations, covenants, representations, statements, or conditions, shall be deemed material to, or part of, this Agreement. No variations or modifications of this shall be deemed valid unless in writing and signed by both parties. This section shall survive the termination of this Agreement by either party. Student agrees to pay NSS a Processing Service fee totaling: $599.00 Student agrees to pay NSS a Monthly Maintenance & Servicing fee of: $28.80 as referred to in section 4

Legal Authorization Form

This form will serve to acknowledge that the below Student Loan borrower has authorized our company, National BPO LLC (NSS) to act on their behalf to consolidate their Federal Student Loans in accordance with the DOE. CLIENT has been advised that once approved for the Federal Student Loan Consolidation, the CLIENT will receive a sixty (60) day furlough before payments will start. If you have any questions regarding this Federal Student Loan Consolidation Program, please contact your Student Loan Consolidation Specialist at (855) 677-6405


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23 thoughts on “National Student Servicing – Consumer Complaint – July 29, 2014”

  1. This place is a scam, I was quoted $1499 to get my loans out of debt, for 8 months I have been paying the rehab fee ($150 a month) and I was current on my payments. I kept getting letter from my loan company saying I was not doing anything in regards to my loan. I called the loan company and they informed me, that last time I called (never contacted loan company by phone before) we agreed that I would send paperwork in. The loan company informed me that National Student Servicing might be calling pretending to be me!

    I called very upset and spoke to an agent who kept promising that they would not take such actions. Yeah right. I asked them to refund my money since they had not done anything to help with my loans. I was told that since they did do work on my file (what work? Besides pretending to be me and doing nothing!) I would not be getting my money back.

    Please DO NOT TRUST National Student Servicing, all the money gone and only to find out that I can consolidate my loans on my own for FREE! This is a SCAM!

  2. National Student Servicing is an absolute scam. I got scammed by them and am dealing with the repercussions now. I have wasted hundreds of dollars consolidating my loans through them unnecessarily. Save yourself the money, time, and frustration and go through Fed Loan Servicing. It should not cost you ANY money to consolidate. Call the Department of Education before consolidating with any companies. They have a list of legitimate companies in their database. NSS is taking advantage of people who are already struggling with money. It is disgusting. They also gave me misinformation about my loan forgiveness program by telling me that I am not eligible, which Fed Loan Servicing told me I am, thankfully. Do not trust NSS.

      • File a complaint with your state attorney general and the Consumer Financial Protection Bureau. You WILL get your money back – esp if you file a complaint with the CFPB. They get personally involved in every complaint and have already sued two deceptive student loan relief companies.

    • Please see my other response below: the Dept. of Ed does not work with any debt relief companies, only loan servicers. Anyone else is just preparing apps you can do on your own for free.

  3. Hello Blen,

    I would actually advise this consumer to get into the right program that fits his financial needs and focus on the actual problem at hand. If there was something illegal taking place then I absolutely would suggest reporting the business to the attorney general, but I think this company is legitimate because the above contract clearly states “We are not affiliated with the Government DOE”

    If you actually read the response from the company you would see that it is not even their client, the consumer does not even know what company they signed up for. I would call negligence on the consumer in this case.

    • You’d blame it on the borrower? Obviously, you’re a sales agent for that company. There’s no other way someone could be that unreasonable.

      If you read the actual complaint, your client was CLEARLY misled if he thought that you were affiliated with the loan servicer. Your company’s name is intended to deceive, that is obvious. You tried to make it sound like the name of a loan servicer.

      I hate to break it to you, but putting some tiny print somewhere that says “Not affiliated with DOE” does not somehow cancel out all the other misrepresentations you are making.

      Here’s just a couple. In your contract, it states that ”

      All services performed by NSS are controlled, and time managed to expedite the consolidation process.”

      This is demonstrably false. Once the applications are submitted, no company or the borrower themselves has any control over the timeline as it’s done completely by the Dept. of Ed and the real loan servicers.

      In another part of the contract, it states: “NSS will provide CLIENT the option to rehabilitate said loans.”

      Defaulted loan Rehabilitation is a federal government program administered by the Department of Education. It is provided by the Department of Education.. not by your company.

      I would call this fraudulently deceptive marketing practices on the part of National Student Servicing, in this case.

      • Just noticed on your website that you guys say you’re “underwriters”. Underwriter doesn’t mean you write on applications, genius; it means that you are guaranteeing to back the loans if the borrower defaults on them.

        Which is NOT what you are doing.

        I’d love to hear what you have to say since it’s clear that you guys are pretty heavy on the fraudulent misrepresentation.

        • Glad you live in a free country and have the option of choosing what company you work with. Maybe you can more productively spend your time looking at the positives in life rather than TRYING so hard to find the negatives in a company you haven’t had the first hand experience with.

      • Two different opinions then. I wish you well with your consolidation. If it wasn’t for companies like National Student Servicing marketing these programs consumers will not know about them. I think your issue should be with the actual servicers and not companies like National who are doing a good service and educating and providing an honest service to consumers.

        You sound like a competitor of National and not one who has actually tried their services?

        • Um, I’m not looking for a Consolidation. I’m not a competitor, just someone who thinks that you shouldn’t mislead borrowers to get them to pay you for assistance. You’re obviously too dumb to realize that your company is using fraudulently deceptive practices to stay in business. But, the CEO is probably (hopefully) not as dumb as you, so he might advise you against making obviously incriminating statements on a website that is well known for shining a spotlight on consumer fraud. But hey, best of luck with your “Student loan relief” gig, you guys will be prosecuted by the feds soon enough. Make sure to save enough for bail.

        • By the way, LOL at “National”. Can’t you just imagine all the borrowers saying, “Yeah, I went with National”. It’s not going to happen – thanks to the power of The Google most college educated borrowers are going to see right through your bullshit.

          • Blen, The woman you were speaking with in the above thread is the CEO’s girlfriend. Simply google Jeff Dapra scam and notice his prior companies they are notorious for not paying employees that work hard and get shafted. The companies sales manager is a piece of work as well. How the FED’s allow a convicted felon with prior prison sentence to run a FEDERAL student loan company still amazes me. Simply use google and put in John Sweetland FRAUD A.K.A. John Bower. I would like to see these companies held accountable. Nicole needs to stop acting like an advocate and admit she doesnt mind steeling from the poor so her channel bag is shiny and her hair and nails are always flawless. Like all scams…..what goes up…..must come down !!!

          • Fascinating – I think you should pass that info along to the CFPB and their state attorney general. The feds would love to make an example out of a company like that.

  4. File an attorney general complaint in the state of California. They clearly lied to you about being involved with government programs. They just filled out free applications

  5. I have close to the same thing he has as a report. I am canceling mine because of this. I’m sorry but I just can’t take my chances.

  6. On behalf of National Student Servicing, I would like to apologize for the bad experience you had with our company. After reviewing our enrollments, it looks as though we do not have any client enrolled the date in which your complaint says you were enrolled, nor do we have enrollments with anyone from the State of Pennsylvania within even a 3 week time period. We would like to contact you to gain more knowledge about your account or help guide you in the best direction.

    We have been in business for awhile now and serve thousands of customers a week. We strive to create the best experience for each and every customer we service. We would like to ensure every customer is fully satisfied with each with our dedication. I encourage you to call our operations manager so we are able to locate your account and investigate your case more in depth.

    NSS also does not advertise for our services, so I apologize for the claims made by our competitors and assure you this is not an advertisement made by us. Customers are our number one priority and I hope to be able to get this situated for you and answer any questions you have about the student loan consolidation process and gain you as one of our clients.

    There are many other companies who try to do what National Student Servicing but fall short. Since we do not do any form of advertising, the commercial you saw was not a correct representation of National and never will be. We care about a long lasting relationship with our clients. Our dedicated management strives to train each team member on honesty and integrity. If given the opportunity,we would like to speak to you over the phone to help bring everything to a resolution.

    I’ve provided direct contact information to our operations manager below, we hope we change change your experience into a pleasurable one.

    Toll Free: 866.740.6035
    Direct: 949.381.2470
    [email protected]

    • Hey a couple quick questions, why did you make your company’s name sound like a federal student loan servicer? Aren’t you worried about getting sued by the FTC for deceptive marketing practices?

      Your website calls your company a “processing center”. To someone who may not be an expert in student loans like you, wouldn’t you think they could be misled into thinking that you’re actually processing consolidation payments to the different loan servicers (what the Dept. of Ed does)?

      Also, it says you have an “in- house underwriting department”. So you’re underwriting federal student loans? Meaning, you are underwriting the federal government’s financial products? Doesn’t seem to make a whole lot of sense..

      Or, are you just filling out some free applications you can find online, and just saying all that stuff??


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