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Nelnet Complaints & Reviews - charging of interest |
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charging of interest
Complaint Rating: 
Company information:
Nelnet
United States
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I am hoping that we can get something together and make this company own up. My wives student loan is with nelnet. She consolidated her student loans in 2000 with nelnet. Last year I started paying the bills and took over seeing that her student loan was paid on time. I have been doing so for the last 6 months. In that time I have been extremely unhappy with this company. I found out that this repayment is structured like a mortgage on a house. In the last 9 years, we have paid $8, 000 dollars in interest and only $6700.00 towards the principal. So I decided to up the payments to try and knock down the principal. I pay $300.00 dollars a month. Roughly $200.00 dollars goes towards principal and the rest to interest. The problem I am having is last month my interest paid was $86.00. this month it was $95.00. If my balance went down $200.00 dollars then my interest should have gone down also. Keep in mind that I have signed up for Kwik Pay. It comes out the same day every month. If I look back over the last few months it seems to be a pattern. There is still only 30 days from payment to payment. So either they are waiting a couple of days to draw my payment in order to accrue a little extra interest or its something else. I feel in my heart based on the evidence that something is amuck at Nelnet. I would love to join in on any class action suit to force them to come clean. Its bad enough for someone to get out of college and have a student loan, basically being in debt 32, 000 dollars (in my wives case). But to have a company that is supposed to help students, take advantage of these students is truly immoral and criminal.
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I've been paying since 2004 and finally transferred everything to an excel sheet. Not sure why that option isn't available on their website, makes you wonder.
After calculating my totals and seeing the trends of interest paid, it's off.
The interest rates vary month to month. You would think that each month, it should slowly decrease according to their "calculations." But it goes up and down.
Any suggestions for a legitimate company with the incentive for a decrease in interest rate? |
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I would love to get a class action together. I recently took control of my fiancé’s finances and am having similar problems with Nelnet's interest calculations. In his case, Nelnet capitalized the outstanding interest into his principal loan amount before it was contractually allowed to. Unfortunately, the service people just talk in circles and have no intention to correct the situation. There is a similar class suit in California against Sallie Mae for wrongfully capitalizing interest on federal loans.
It's bad enough that the original loan amount went from 16, 000 to 29, 000 during the 3 1/2 years he was in college.
SujiQ - Although I cannot comment on their legitimacy, we recently consolidated the Nelnet loan to Wells Fargo (it was the only company consolidating private loans). The interest rate is still variable, but went from 16% to 6%. |
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Ok, people that hate Nelnet. I am slowly getting all the information in regards to how Nelnet operates. I found out last week why my interest is so weird and how they charge. It turns out that this is a federal loan, ( which I didnt know). And because its a federal loan they can do pretty much anything they want. I found out that my interest is charged daily regardless of my balance. I get charged roughly $3.00 a day... period. The reason my interest changes each month depends on how many days in the cycle. It can flucuate two to three days depending on the month.
Also I found out a little secret that they use against us. A couple of months ago I had upped my payments to try and knock down my principal, when I found out how the interest was calculated then I went back and dropped my payment back to the normal amount. I did this 10 days before my payment was to be deducted from my bank. Well, it turns out that because I switched my payment amount, Nelnet decided to go ahead and withdraw my payment the next month. I had noticed that my payment did not get withdrawn from my bank so I called customer service and thank god I got ahold of someone that would talk to me. She told me that Nelnet will usually push your payment to the next month whenever you change something. The problem is that they keep charging you interest for that whole time. So my next payment that they pushed would have all gone to interest and not principal. Mind you, this is their policy. It finally dawned on me why my wife got behind last year, because she was making changes on the payments and Nelnet would just push it to the next month, all along charging interest. I hope this is making sense to everyone reading this. Until we all payoff our loans we need to share this info with each other so that no one else gets ripped off any longer by Nelnet. In order for the interest to stop accrueing that month I had to make a payment online. SO MAKE SURE YOU MAKE A PAYMENT EACH MONTH AND MAKE SURE THAT NELNET GETS IT, CHECK YOUR BANK ACCOUNT AFTER YOU MAKE A PAYMENT TO MAKE SURE IT WAS DEDUCTED. Feel free to email me if you have any questions or answers.
justjackis@hotmail.com |
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How about this?
*Nelnet reported my payment information wrong to credit bureaus. How can I be on time one month and 90 days past due the next?
*They also failed to apply my payments for a year and a half!
*Three years ago, I was in forbearance...which they forgot to tell my grantor and the government about.
*I have been filing dispute after dispute...now I am suing them and the credit reporting agency (separately) for damages. They're both screwed. |
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I am also a long time customer with Nelnet. I lost my job and applied for deferment. I faxed it twice, and finally called customer service. Customer Service said they didn't receive any deferment, but then one man I spoke to said he saw it in the system and to hold off on payments because it should go through soon. It never did. I called again, and the customer service rep told me I need to apply for forbearance, until the process the deferment form. I did not know that interest you accrue on forbearance actually gets applied to principal at the time. I agreed. A few months later, I received a notice that my forbearance was going to end. NO CORRESPONDANCE ABOUT THE DEFERMENT. They have been leaving me automated messages about my account, but I haven't been able to pay my loan because of unemployment. Each and every time I call, I can no longer get anyone on the phone!
So then I filed for deferment online and forbearance. No copy or confirmation AGAIN on the deferment. I'm seriously beginning to think that they are PURPOSELY not processing the deferment so that they can make more money by forcing me to eventually have a higher principal with a forbearance.
What's worse is that I can't reach anyone at that company to resolve this? |
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| Wow... I should have read these postings sooner. I have been a nelnet customer for last five years. This year I looked at the 1098e and found that my interest payment for the year was $1538... so I looked at my last year's 1098e and found out that it was $1471. How can my interest payment go up when it is fixed at 4%. Does anyone know how I can get out of this? I would love to be part of the class action... but I need to get out of it first. |
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| I have the same problem with nelnet, my interest payment goes up too, even when I made payment far ahead of time. I would love to join a class action again nelnet |
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I would be interested in joining in on any type of class action suit against Nelnet as well. I've had the same inconsistencies regarding their interest payments. Though I've paid on time for the past 14 months, my interest payment jumps around in a wide range that seems to follow no ordered logic. I usually just pay the minimum on my balance each month ($100), however the interest charges have ranged from $39.30, all the way up to $101.78 (with an average at around $76). There were three consecutive months where the interest payment was above $90 ($99.77, $91.90, and $91.86, respectively), only allowing $16.47 left over to be paid on the principle in that period.
I have had two deferment periods since beginning repayment: 2/2007 - 10/2007, and 7/2008 - 12/2008, and am not sure if this could have had any influence on this situation, however, it seems very suspicious to me that nearly 76% of my monthly payments have gone to interest. Since I have begun repayment in 11/2007, I have paid a total of $2, 536.72 on interest, and $796.96 on principle. This leaves an average monthly payment of $90.50 to interest, and $28.46 to principle.
Recently, I have been upping my payments to about $150, however, this also increases my interest payment. If anyone has any insight on this issue, I would appreciate it! I've contacted Nelnet about this, however, I received a vague/cookie-cutter response, and was quickly shooed away. |
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| We have paid lump sums on my wife's account hoping to get the principle down. She has been told that interest will be paid first (just like a mortgage). So there is no way of paying it off early unless you pay the total amount they want. Every time we talk to someone...it's a different story. We are in on any class action suit... |
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| I am having the same problem. I have been paying extra for months and the amount that goes to principle, if any does, is always different. I have also been charged several fees that I am currently seeking an explanation for because I wasn't late and the payment was not returned by the bank. They have been moving my due date forward. Right now I don't have to make a payment until September but if I didn't make a payment until then the interest would take months to pay off. They informed me that I needed to check a box on the payment page to not have the payment date advanced. I couldn't find and had to ask where it was. It lies pretty well hidden through four layers of buttons. When I did find it, I couldn't mark the box, which they say is due to my firewall or internet provider. They say I have to mail extra payments to the address for special payments and request that my due date not be advanced. They do whatever they can to keep people from paying off their loans. The system is set up to make you fail. I am contacting the Attorney General of Nebraska but I would definitely want in on a class action suit. Their abuse of people with student loans is obscene and disgusting. I feel hopeless to pay off my loans even though I have been paying tons extra. |
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When you get married, you never think you are going to get divorced. So is my problem with Nelnet and their joint consolidated loans. My EX husband, a college graduate, earned a wonderful $25, 000 debt for his education. I, NOT a college graduate, only had a $7000 debt for my one year of college. We decided (pre-divorce) in our early 20's, to consolidate our loans for "one low monthly payment" through Nelnet. Four months later, we divorced... and being young and dumb, we never realized that the FEDERAL loan wouldn't allow a joint consolidated loan to UNconsolidated. Naturally, my jerk of an exhusband REFUSES to pay his loan. For the last 11 years that I have been with Nelnet, my exhusband hasn't made more than 3 payments TOTAL. I can't afford HIS and MY "low monthly payment", and quite frankly, I refuse to pay ANYTHING toward his loan. I didn't earn the college degree, so I'm certainly not paying for his. I've been delinquent for 11 years with Nelnet; only paying my court mandated $40 a month for my portion of the consolidated loan. Because his amount owed is in excess of $200 a month, I'm not really paying anything toward the loan with my measly $40. I have a RUINED credit score because of this.
All in all, the system is BROKEN. Something needs to change when divorce rates are going up exponentially, people are making less money a year, and they can't ever escape their ex's and move on because they are FOREVER BOUND by law and debt. It's disgusting that there is absolutely NO WAY to UNconsolidate a federal loan. This needs to be remedied. |
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| Here is what happened to me. I wanted to start paying off my Nelnet balance quicker and they reverted to an old account that had been closed. They charged me with a $15 NSF fee after the people on the phone said they wouldn't. Then, for whatever reason, my loan was put in forbearance status, which I did not request. After three days of calling, they haven't remedied the situation and I am still in forbearance status. |
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| I would love to find a way to 'beat Nelnet'. My balance has barely moved in the past 4 years, due to a 1 year forbearance. There are so many fees and interest payments tacked on, I actually am paying an $89 'fee' each month. I am never going to get this paid off unless I pay in one lump sum, which I guess I just need to suck it up and start saving for it. I had no idea I'd have such a terrible time paying this loan off! It was a scam when I re-financed the loan back in 2000, clearly it's my fault for being so naive, but the law that I can only refinance a student loan one time is ridiculous. |
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| I spoke to a guy and he explained the varying principal payments as DAILY accrued interest. So, yes you are making payments every thirty days, but because some months have 31 you are charged for those extra days. This does not sound like interest, it sounds like a FEE or as loan sharks like to call it "A VIG". I have been paying a 30k loan for the last 12 years ($300 per month) and have only whittled it away to 21k. It will take another 15 years at this rate. Would have been faster to take out a 30% credit card. |
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| Nelnet is willing to review each individual situation that has been referenced, please feel free to give us a call so that we can look into your accounts for you.1.888.486.4722 |
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| I am having some problems with Nelnet right now after they took over a Great Lakes loan that was paid ahead. I applied for Quikpay and Nelnet failed to implement it yet sent me zero due statements for three months. The reason the customer service person gave me was that I never went online and checked a "override" box to increase the amount above the minimum payment due (as I have been doing for the past 9 years with Great Lakes). They never informed me about this additional step of checking an online override box at the time I had set up Quikpay. They have so far refused to credit me the $600 in interest that has accrued during the three months they were sending me zero due statements. I am ready to send this to the NY AG but I see that he has already investigated Nelnet in the past and received settlement money from them. I think I will send it to the NY AG anyhow. If I pay the accrued interest, it will be in a separate check marked "under protest-- disputed amount-all rights reserved" in the memo line. I came to this site looking for a class action to join, but maybe I will contact a class action firm directly. If you have had your loan taken over by Nelnet please be forewarned about their Quikpay scam-- if you are NOT in default and paid ahead they will use this glitch to slow you down on your repayment and allow interest to accrue to your detriment. |
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