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Nelnet / scam and cheating

1 United States Review updated:
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Just recently made 29th consecutive payments of the 30 consecutive payments included in a Nelnet 'incentive' program and was informed that I didn't sign up for e-correspondence within 30 days of consolidating loans with Nelnet almost three years ago.

Nelnet doesn't keep records of incentive programs, and doesn't bind themselves to actually honor these programs. They make up phony requirements and 'disqualify' their clients at the last minute. No one at Nelnet has been able to articulate why they are refusing to honor their incentive programs.

Has anyone else experienced this? My question to Nelnet is how many incentive program participants are actually honored?

Very clearly I am one which they have not honored who did everything requested at time of loan closing and consolidation.

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  • Sp
      27th of Feb, 2009
    0 Votes

    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.

  • Ma
      2nd of Mar, 2009
    0 Votes

    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.

  • An
      17th of Mar, 2009
    0 Votes

    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.

  • Hp
      3rd of May, 2009
    0 Votes

    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.

  • Br
      4th of May, 2009
    -5 Votes

    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.

  • 04
      1st of Jun, 2009
    0 Votes

    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 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.

  • So
      30th of Jun, 2009
    +1 Votes

    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.

  • An
      6th of Jul, 2009
    +3 Votes

    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.


  • Da
      31st of Jul, 2009
    Best Best Advice +4 Votes

    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

  • Sc
      1st of Aug, 2009
    +3 Votes

    I see how some people may feel like some of the individuals on here may not have read the fine print. Especially when they say they themselves received their rate reduction. BUT, how can we be sure this isn't a Nelnet employee stating that just to save face. We can't really verify the information on any of these postings. BUT, I highly doubt a group of random people were so incredibly bored with their lives that they decided to waste their life and time on coming onto this complaint board in order to state false accusations. Clearly every single one of them that posted comments about Nelnet has very strong feelings for this company, and not the warm and fuzzy kind.

    To make the statement that Nelnet is a reputable company is almost comical. Please do your research. Have you heard about the stuff they have been involved in? They have been chased after more than one attorney general and have had to pay more than a million dollars for breaking the rules!

    That doesn't sound reputable to me. I have been writing the White house about them. Please go to and fill out a comment to the President of the United States too. He may not be able to do anything on an individual basis, but if he sees enough complaints, someone may look more closely into Nelnet. The Student Loan crisis and the repayment of loans are drowning our economy. Something needs to be done.

    Is there anyone interested in making a class action lawsuit against Nelnet for their ugly business practices? I have a clear case, I have an interested law firm. I'm just looking for others to join to create a case with me.

    I do with you all the best in your search to pay back your loans WHILE trying to live life with basic necessities. I for one have experienced Nelnet placing a loan into default while still in school, causing no further advancement in education and with no means to stop the rest of the loans now hitting default. How does THAT make Nelnet a fine and reputable company? They got rid of the loan the day before new law was being signed. Coincidence? I think not.

  • Rs
      28th of Dec, 2016
    +3 Votes

    @ScrewedbyNELNET They do the same kind of business with their employee's investment accounts, using some absurd reason to put mine into a .05% money market account, when it was making 18%., with one of the stocks I chose. One choice I had, and I still have it one their own letterhead, is to leave it where I had it when I left the company, and I selected that.
    As you would expect, incredible turnover. Lots of promises, but little fullfilled.

  • Sc
      1st of Aug, 2009
    +3 Votes


    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.

  • Ar
      21st of Oct, 2009
    +1 Votes

    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.

  • Co
      5th of Nov, 2009
    +1 Votes

    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.

  • Fr
      20th of Nov, 2009
    0 Votes

    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.

  • Ba
      2nd of Dec, 2009
    +1 Votes

    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 ###.

  • Po
      24th of Jan, 2010
    0 Votes

    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- 303-696-5678 or fax 303-696-5271.

    For More Information or to File a Complaint with the federal people call the ombudsman below.
    Notify the Federal Student Aid Ombudsman at 1-877-557-2575 or 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 20044-0084
    800-4-FED-AID (TTY: 800-730-8913)

  • Mc
      2nd of Mar, 2010
    +1 Votes

    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.


  • An
      2nd of Apr, 2010
    +2 Votes

    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?

  • Na
      2nd of Apr, 2010
    +1 Votes

    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.

  • Ne
      19th of Apr, 2010
    +1 Votes

    I'm willing to compile complaints and talk to a lawyer.

    IF you get a statment it may not be correct.

    You cannot make principal payments only & have them applied properly to your account.

    I think now is the time to take action. I'm Pissed that this company can take advantage of us, it's employees & taxpayers!!

    E-mail me with your detailed complaints & any information (court cases or laws that may apply).


  • Sh
      17th of Feb, 2017
    0 Votes

    @NelnetSUX I would like to know how to sue Nelnet, like in a class action lawsuit. Or, would I have to get my own attorney? So in short, my problem with Nelnet is now that I have paid back almost all of the amount owed ($51, 000) I saw in the history information the principal amount of the loan, and I believe it is wrong. The amount for my son to go to school was $9300, however, they charged $19, 440. I have already paid the loan in full, and didn't realize this problem until a year after it's been paid. I also have additional loans with them for my other son's schooling, so am still paying on that. Each time I call Nelnet they can't even connect the dots, as your other reader stated, each time you call the representative say something different and you never get anywhere with them. So what't the next step? Does the government help in anyway, say Dept of Edu?

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