Nelnetcharging of interest

1
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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.

Responses

  • Mj
    MJL4 Jan 03, 2021

    Nelnet has sent bills throughout the mandated forbearance period that shows interest and late fees. The latest one came with a due date of Jan 15. requiring full payments for the last four months, or they will charge late fees. Why is this happening? Is Nelnet exempt from the national student loan forbearance mandate?

    0 Votes
  • Ta
    tammymbrady Nov 22, 2019

    I feel like I've been scammed. Got a solicit call for loan forgiveness. Usually dont reply to these but have been through so much I went for it. First they say 20 dollars a month for 20 months and it will be forgiven then the paper work came and it was something different. When I contacted them about it they had no record of that agreement. Originally my loan was in my name only now they wanted my husband's income who's been out of work for three years Pryor due to knee replacements. Before that cancer. Before that he cut two fingers off. So it's been tough. When I started to make payments my son who has three children and his wife doesn't work. ...their house burned down so they came to live with us and have been here for 5 months. So I asked for a deferment for a couple of months. So for and 86. Dollar Payment it cost me over 600. Dollars takes on to the loan. That was a few months ago and I am scared to call so they are threatening me for default now. Not sure what to do..I have a outstanding credit rating but know this nightmare is going to ruin that. Any suggestions.

    0 Votes
  • Gb
    gbolly97 Aug 15, 2019

    I have a loan with Nelnet, and have been paying $928.77 monthly on my student loan, Nelnet charge me $11.40 daily on top of regular interest rate and they expect me to continue to pay $928.77 monthly for the next 19 to 20 years. I called to refinance with a private finance company. NELNET needs to be investigated criminally, this is extortion and slavery.

    1 Votes
  • Ma
    Maria Isabel Lopez Oct 20, 2018
    This comment was posted by
    a verified customer
    Verified customer

    The Federal loans being managed by entities such a Nelnet are the biggest ripoff - We are paying thousands of dollars per year towards principals that never go down, while the interest yearly amount steady increases. How can we ever get out of this nightmare. 30 years to pay my school loans with interest at 3.5% compounded daily interest? Common! What a f%$#&@! joke! I will be 80 before I make a dent into my student loans. Ready to join the law suit: [email protected] Let's do something about his!

    1 Votes
  • Cr
    Crystalbigham Oct 17, 2018

    I would like to join in as well. My student loan started in 2009 while I was in school. Total amount after school was around $9, 000 and got put on deferment or forebearance due to being a divorced mom with 2 small kids and low income despite me working I was still below poverty. I landed a promotion at work which pulled me out of every qualification for that. Which sent my $8k loan up to $17, 000 overnight. The only payment plan I qualify for now is graduated repayment. My payment is $192.00 a month and only $10 goes towards principle. How is one to pay off a loan with daily compounding interest and a payment that does nothing at all. I don't have the credit to get a bank loan to pay it all off and even so I couldn't even afford the $600/month payment a bank would expect out of me. I went to school to better myself and help provide more income to sustain life as a divorced mom with small kids in tow. Nelnet is an absolute scam and the gov't should hold them accountable. Daily compounding interest...a high interest from say one of these secondary secured loan companys doesn't even come close to what nelnet is doing. My email is [email protected] please help!!!

    1 Votes
  • Fe
    FedUpWithNelnet Jun 13, 2018

    My story began back in 2010... first MyGreatLakes bought the loans off the previous servicer and each time I paid only the interest was covered not the principle! So, I paid extra to them after a while and it still went up. At one point I wound up disabled and went through the DOE to try and help me apply for TPD discharge! At the time Nelnet was the ones that the application went through... end result was it was approved. Then last December I started receiving statements claiming $0.00 due and until the last one I received had not looked at the back of the statement... on that it said I had accrued interest totaling about $84, another "letter" (not a statement) wound up in my mail just the other day with a new total of $177 and some odd cents as the amount! TPD discharge releases the approved applicant of any remaining interest as well as principle! Apparently what they did was switch it to forbearance or deferment (with only a year "grace period") from what it originally was - TPD discharge has a 3 YEAR monitoring period, mine will be up in November NEXT YEAR! These folks are pure scum of the worst kind!!! Someone should let the DOE know so hopefully they can kick these lying theives to the curb ASAP!!! If there was a way to join one, I'd happily be a part of a class action lawsuit against them... purely on principle alone! This bunch needs to be taught a lesson and made an example of... they're no damn better than MyGreatLakes another bunch out to drain every penny from others!!!

    1 Votes
  • Co
    concernedspouse Jun 09, 2018

    I very upset with this mess my wife has gotten herself into with this company. She co-signed for a loan from this company, for my stepdaughter to attend Brown Mackie College. The loan amount was supposed to be $7500.00, but my stepdaughter claims that she only received $2500.00. Some problems arose & my stepdaughter didn't finish her course, but very soon after, Brown Mackie College closed it's doors on all of it's students. Well, a few months later, that's when the bills started coming for the loan repayment, for the full amount that was applied for. Netlet had been contacted & told that only $2500.00 of the loan had been received, but Netlet claimed they sent all of the money, even thou bank statements showed only $2500.00 being sent to the bank. Well my was threatened to be sued by Netlet, so she started trying to pay off the loan a few years ago. Well now their really getting dirty! Around April of 2017, they started sending bills with the amount due, $0.00, until further notice. Well I tried to tell my wife not to fall for that, because I thought it was some kind of trick, but she was not trying to hear it, as she thought she was being awarded some kind of grace period in payments. Well several months went by, & my curiosity was getting the best of me, so I started comparing the current bills to the previous bills, & sure enough, the total amount was more than when she first started paying, as the interest kept going up higher & higher. This is a very dirty trick, & as far as I am concerned, this company needs to be sued & shut down! Is there a law firm out there handling cases against Netlet???

    1 Votes
  • Mo
    Morgen Grandjean Aug 22, 2017
    This comment was posted by
    a verified customer
    Verified customer

    My husband has been paying off his consolidated $80k student loan since 2000. We have given Nelnet/ACS/Xerox/Conduent/NYSHESC, yes all of those companies have their hands on our money, almost $150, 000.00 since the inception of payment in 2000 and somehow we still have $65k left to pay. Not one single payment has been applied the same. I hope this consortium is taken down. I hope these people go to jail. I hope that we can come together and get these people to own up to their fraudulent behavior. It is incredibly maddening and horrifically stressful trying to deal with the devil.

    1 Votes
  • St
    student - CA Apr 19, 2017
    This comment was posted by
    a verified customer
    Verified customer

    I am here today Wednesday 19th April /2017. I have 42K of original loan combining 10 groups A-H with different interest rate 3.15%~6.55%. I graduated May 2014 with BS in Computer Science, and started my repayment 01/19/2015. I set up auto wiki pay every first day of the months, and my monthly payment is around $535. I paid off one group F about $1000, and they bring down monthly payment $524. I had all history payments and just recognized recently that they are trying to push "the advance due date" to future to accrue the interest from me. Even though I tried to make overpayment every month, and sometimes pay two or two times a month to toward the principal, those extra money never reached out the principal and toward the interest first. They explained they accrued interest every single day first, and we (victim students) have to pay interest first. Sometimes, they tried to delay withdraw my extra payment and invisible 'the advance due date' box in order for them to accumulate more interests. I tried to contact representative chatting online 4~5 times, and stated that I want them not to advance the due date. They said they send a request for me and I am waiting till next month. When I check back, they still advance the due date. They tried to delay the process as long as they can to have us pay more on interest instead of principle. They explain they advance due date to help me manage my loan repayment. Whatever they said do not believe them because they are always nicely explaining what they already did to get your money. Summary: Whatever effort we are trying to pay back our loan, there is no way to pay it off less than 10 years unless you pay double or triple monthly payment. (example: we borrow ~40K for a car with 5% interest, and will pay it off about 60months~5years) But Why we borrow 40K student loan with small interest from 3%-6%, and have to pay it off from 10 to 15 years with the monthly payment similar?????????How much more interest we have to pay for Nelnet? I have a mortgage too and all my extra money always go to principal every month. My mortgage interest is higher than student loan interest, but that is not terrible like the way interest loan from Nelnet accrued.
    I want to join the lawsuit when you guys start and need me, anytime, and I am in San Jose, California. my email: [email protected]

    1 Votes
  • Ja
    janineteron Oct 09, 2016

    Invaluable comments . I am thankful for the details . Does someone know where my company might grab a blank IRS 1098 copy to type on ?

    0 Votes
  • El
    Eliezel Ilano Oct 09, 2016
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    a verified customer
    Verified customer

    I needed IRS 1098-E yesterday and was made aware of a web service that hosts a huge forms library . If people need IRS 1098-E also, here's "http://pdf.ac/4DiJoK"

    0 Votes
  • St
    Steve Churchill Sep 18, 2016
    This comment was posted by
    a verified customer
    Verified customer

    Just today here in September 2016 do I read all of these complaints and realize that this is happening to me also. I would love for a law firm to consolidate and file a class action lawsuit against Nelnet. They are horrible. Having paid for my daughters college and now in debt $78, 000, I never get ahead and being now retired and on fixed income I have found them horrible to deal with and would gladly join a lawsuit. There are firms out there that love to take on these kinds of injustice. Make sure you complain to all of your so called elected officials, especially the federal ones who give purse strings to the Department of Education. Read other sites, articles and the August 2016 issue of Consumer Reports and you will become enraged over this.

    1 Votes
  • Ut
    utvolsfn76 Sep 01, 2016
    This comment was posted by
    a verified customer
    Verified customer

    I've been paying on my student loan since 2007 through ACS. Evidently Nelnet services this loan. I've paid $9000 in interest and $1400 toward the balance. This is worse than a credit card. I've looked everywhere for someone to take over my loan to get away from Nelnet and no one will. This is a rip off! From what I've found online I'm not alone! I can provide more account details if needed.

    1 Votes
  • Ut
    utvolsfn76 Aug 31, 2016
    This comment was posted by
    a verified customer
    Verified customer

    Simle, been paying on student loan for 9 years and balance hasn't moved. This is the biggest rip off ever. I've paid $11000 and my balance is the same. Can't get away from them either. This loan will never get paid off and I can't get away from them! Is there a class action lawsuit for this company, if so sign me up!

    1 Votes
  • Ro
    Rob Oesch Jun 22, 2016
    This comment was posted by
    a verified customer
    Verified customer

    Thank you to everyone who has posted here. We are in the same situation and welcome any advice on how to either move the loans somewhere else or stop having our due dates pushed back because we pay additional money each month. One 'group' has $30, 000+ spread across 6 different loans all at different rates. Some rates are low (2.0%'ish) and others are high (6%+). There is no way for me to target the higher interest rate loans first. This situation is very frustrating.

    1 Votes
  • Ay
    ayoung237 Jan 31, 2016

    I am so glad that I have found this board. I have been looking into my wife's and have some serious questions. One for $5000 with a 10 year repayment term back in 2004. I am looking at it and I see the it has a balance of $2000, it is now 2016, and was on forbearance for one year so how is this possible? They have violated the terms which was set at 120 months.

    1 Votes
  • 1m
    1Madwomen Jan 21, 2016
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    a verified customer
    Verified customer

    Last report of this issue was in 2012. Well it is still going on now? They are reporting it in the 1098-E. The wacky principal and interest proportions are still happening. In addition, the monthly principal and interest i saw on their website did not match my 1098! Class Action needed with national media attention people.

    1 Votes
  • Fl
    FloSoMoc Nov 25, 2015
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    a verified customer
    Verified customer

    sad am...are you saying you can call nelnet and tell them to cancel automatic payment push dates?

    0 Votes
  • Sa
    sad am Oct 16, 2015

    Just a tip for everyone. I had contacted nelnet several times trying to figure out what the deal was with their numbers. I had been making very substantial payments to a particular group which bears the most interest only to see no effect at all upon the principle. After much prodding, a tidbit of info regarding their policy, slipped from their reps lips. When I made these payments ($1000), they would then automatically push that groups payment as far back as 6 months (those mutha f) thus negating every effort I had made. It is called automatic group payment delay or something to that effect. It was explained that this was a benefit of theirs to which I had some choice words to retort. Unbelievably, this can be canceled; now I feel I can make some headway, but I've already thrown down $4000 extra which will have no real effect on my interest/ principle of the group hitting me hardest. These people are pulling this crap on those of us who just got college educations...they got a lot of gall.

    1 Votes
  • Pa
    PatsyM Aug 15, 2015

    Lets join in please, let me know I am in!! My balance keeps going up even though I am paying more each month!!! They are worse than the credit card mafia!!

    1 Votes
  • Pa
    PatsyM Aug 15, 2015

    Please contact me to join in on the class action law suit, they are doing what banks got fined for when it comes to undisclosed interest. My balance has gone up and I pay twice the payment each month...so how is that???? Please lets join in on this and take it to court.

    1 Votes
  • Ma
    matteo pescado Jul 24, 2015

    it appears that the more you pay it down their financial algorithms uptick your interest because they know they dont have much longer to enslave you.

    1 Votes
  • Ma
    matteo pescado Jul 24, 2015

    going through the same thing. a payment that should take 10 seconds will take them 3 days intentionally to confuse you and with the acknowledgement of the time cost of money. it appears they charge twice the interest on the actual day its processed. i guess they think they're too big of an institution to be brought down or sued and think they can hide behind their bureaucratic veil. their mindset is "who is going to care about a few cents and waste hours of their lives on the phone with our operators and get nowhere. hahahaahhaha (satanic laugh)".

    just gave them 150.00 towards a group payment and the per day interest went up one penny. how does that work? sick of being stolen from. i want to move to europe for my masters degree and stay there. they have free public college education in many countries. germany doesnt believe in usury anymore like the jew-american imperialists in this country.

    1 Votes
  • Ri
    Rip Off NelNet Jun 20, 2015
    This comment was posted by
    a verified customer
    Verified customer

    The Nelnet payment plan is also a ripoff. I set up two payments to pay tuition. The first payment was immediately taken from my account and not sent to the college for 16 days. The second payment was taken out and after 16 days it has still not been sent to the college. When I contacted NelNet Jared would only tell me that everything looks OK. I guess so they have my money and my account at the college is on hold for nonpayment.

    0 Votes
  • Ri
    Richard Boyer May 10, 2015

    the telephone #OF NELNET IS [protected]

    1 Votes
  • Ri
    Richard Boyer May 10, 2015

    mine is the same thing borrowed 3000.00 been paying on it for a total of 14 months at 235.00 garnishing my ssi disability check ive been disabled since 2004 they turned my discharge down said I don't quailify for the program . any way I still owe 2436.50

    1 Votes
  • Am
    Amber Payne Mar 21, 2015

    Ai am on board. I have the same issue. Disgusted stressed and still owe $70 k. It's awful!! Criminal

    1 Votes
  • Sw
    swingbaz Dec 15, 2014
    This comment was posted by
    a verified customer
    Verified customer

    i got a 5000 teacher forgiveness to my account. guess what they did? they took $1356 of it in interest?
    i have paid $400 back every month for 20 mths automatically from my bank account. it started doing this while i was still in school. i paid $400 per month during the 6 mth grace period so that my interest would not be capitalized on the loan.
    in short, i have paid $8000 of my own money and got $5000 in forgiveness for a total of $13000. but my load principal has only gone down $6933, which means they have taken $6000 of interest so far in 20 mths. wow. so why cant we start a class action law suit?
    these people cant even properly explain the random capitalizing of interest 1 year after a loan has been in repayment and i have been making payments all the while. every mth. same day each mth.

    2 Votes
  • La
    LaurelEddy Nov 28, 2014

    Does anyone know anybody that has paid off a loan with Nelnet? I do not understand how payments could be made and the balance goes up. I wish I knew the kind of attorney to contact, the class is already set.

    1 Votes
  • Sh
    sherrym. Oct 27, 2014

    I would love to be part of a class action against Nelnet. I've been paying on my loan since 2007 and the balance then is the same as it is now in 2014. When I asked about it, their customer service rep said that "what you see online isn't accurate" and that he'd send me a detailed payment summary. WHAT?!?! Why would they not have the accurate information online? How could I have paid over $20K and not decreased my balance at all?!?! They don't even offer the option to pay a principal only payment because "interest is accrued daily" and whatever is leftover after the interest is paid is automatically applied to the principal. Then how have I been paying over the minimum amount and not had anything apply to the principal? This company is super shady. Please point me in the direction of a lawyer, ASAP.

    1 Votes
  • Se
    SentinelAngel Aug 20, 2014

    I am also a victim of Nelnet, and would love to join in on a class-action suit. Their practices are ridiculous!

    0 Votes
  • My
    mythoquest Jul 04, 2014
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    a verified customer
    Verified customer

    They settled a lawsuit in 2010 check this out: http://www.huffingtonpost.com/2010/08/13/nelnet-lawsuit-settled-st_n_681856.html

    0 Votes
  • My
    mythoquest Jul 04, 2014
    This comment was posted by
    a verified customer
    Verified customer

    Criminal is right. I would support a class action suit. It is true - what everyone is saying, and I have had the same experiences. At the least, they should reported and investigated. It would be great to see a national media outlet do an investigative report, and air their report during prime time.

    1 Votes
  • Mj
    Mjb2163 Jun 12, 2014

    NelNet loans are criminal to say the least, my financial adviser at college told me it was a good place to get a loan from. Over the life of the loan (since 1/14/2014 to 6/12/2014) 61.15% of my payments have gone towards interest! This is unheard of, they are loan sharks and take advantage of people who can not afford a higher education. I called them a few times to lower my interest or change the interest accruals. They did not help me at all and I was put on hold several times, by the time they got back and gave me a bunch of excuses I had it and hung up on them. These people disgust me and something needs to be done to end this so future generations will not be bullied by loan sharks like NelNet.

    1 Votes
  • Th
    The Beave Apr 25, 2014

    Maybe people should actually read the promissory note they signed for. Literally everything is laid out in it. The fact that your interest will accrue daily based on you IR and principle. A lot of people dont understand also that even during times of in school deferment the unsubsidized loans still accrue that interest daily. That's why all your payments in the beginning of repayment go towards just interest. And if you take out 50 grand in loans obviously you're going to rack up a high interest total. As for your specific problem I'm guessing when the Dept of Ed did your consolidation it was a variable rate consolidation which is subject to change the IR. The problem isn't the companies that service your loans...you have to remember that these guys all work under government rules and regulations. So if anything blame the federal Dept of Ed and your schools for making ### rules and not educating the borrowers of what they're actually signing for. Or just blame ourselves for not reading what we're signing.

    0 Votes
  • Ro
    Rose Marie T Mar 15, 2014

    I also am a victim of Nelnet. I have paid $27, 000 of the $32, 000 that I borrowed. My current balance is at $35, 000. I now owe more than I borrowed. Something is wrong. I have no issue with paying back what I owe, but I do have an issue with their business practices. I too would join in on a class-action suit.

    1 Votes
  • Ry
    Ryan Tu Nov 12, 2013

    After reading those complaints, it's pretty obvious Nelnet is trying to accumulate money from everyone. I requested for deferment three times, and I will send in fourth request after filing this. Nelnet representative claimed that they got my requests however I did not send in the necessary documents to justify my request for deferment.

    1 Votes
  • Ti
    Tiredofbeingmilked Sep 14, 2013

    I think my husband and I have everyone trumped as far sad the ought are factor goes! Paying his loan with nelnet since 2002... Original loan amount when consolidating with Nelnet was $32, 000... 11 years later after paying $700 a month we still owe Nelnet $55, 000!!! If you total up how much we have paid them since 2002 it is about $84, 000!!! But the monthly statement says we have only paid $63, 000... We hired an attorney recently and paid $500 for him to tell us a month later that since it is federal, Nelnet is not subject to Truth and Lending Act. Are you kidding me! And of course, if you can get a personal loan to pay off make sure you don't mention to the bank it is to pay off a student loan. We were lined up to get a loan from BB &T and at the last minute they said no because we mentioned student loan.
    I know many of you above have mentioned a class action lawsuit. I would be willing to pursuit this for real if enough are interested. At this rate we will never be able to pay off this loan (9% interest).
    Email us at [email protected]

    1 Votes
  • Au
    AustinBorrower Jul 03, 2013

    I am also very interested in staying in the loop for a class action lawsuit. I am so upset with how they are charging interest of wildly different amounts each month, and even doing my own calculations on simple daily interest, I can NEVER get to the amount they claim accrues on my loans each month. It all started when they recalculated my standard repayment plan (meaning I will pay the exact same amount for 10 years as long as there is no deferment/forbearance). They chopped several months off the term, which upped my payment (almost $600/mo). In the last two days I've spoken to four customer service reps. One of whom was intelligent and understood the problem the other three who were EXTREMELY RUDE, speaking to me as though I was ignorant "this is how student loans work", irresponsible "this is the risk you take in accepting federal student loans" and "it's your responsibility to check your statement every month, we are not responsible to inform you if we recalculate your payment", and even dumb "it is simple math". I have a master's degree and work as an accountant, so you can believe they got an earful about how their "simple math" was wrong. My problems are: 1) they have no amortization schedule for the standard repayment plan, 2) they are allowed to recalculate my perfectly sound and unchanged payment schedule without my knowledge or consent, 3) they do not have to disclose any changes to me, and 4) there is NO LOGIC TO THEIR INTEREST CALCULATIONS. I have saved all of my emails, chat sessions, and documents and believe I have serious concerns Department of Education should know about or a class action lawsuit would be interested in using. Unfortunately, I have no idea how to contact Department of Education about these complaints and evidence - maybe the contracting official in charge of Nelnet's contract?

    1 Votes
  • Ms
    Msmimi May 25, 2013
    This comment was posted by
    a verified customer
    Verified customer

    I would love to do a class action. I requested a forebearance with direct loans until next year. It was approved. Ny loan was then transferred to Nelnet. I called them because I had a different payment agreement with Dls. They said they would honor that agreement and the deferment. Now they said DLS made a mistake and I am ineligable for a deferment and now they won't honor it.

    Email me if you want to go in. [email protected]

    0 Votes

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