Nelnet — nelnet profiting from middle class people
I am writing this to all the professionals with an outstanding graduate/undergraduate student loan. I am a responsible hard working professional paying my hefty ~$75, 000 graduate loan every month. I am finding out more and more that I am among hundred of thousands of people getting royally ripped by Nelnet. Originally I had a $4, 400 undergraduate loan before attending graduate school in 2009. Once I graduated in 2010 and was time to pay my graduate loan back ($60, 000) my outstanding loan amount had gone up to $70, 000. In 2011 Nelnet decided to take over my Direct Student Loan and stretch it out to a ten year term and consolidate it along with my graduate loan. My monthly payments are about $600 a month. I was just informed by a Nelnet rep that out of the $600, only 100 goes towards my principal on all the four group loans that I have (Group A - D) and the remaining goes to interest. In other words Nelnet is pocketing $6, 000 of my $7, 200 annual payments and applies only $1, 200 to my principal. I very much feel that the monthly payments that I am making is a huge waist since I have to pay this awful loan for the rest of my life. Nelnet is applying only $34 a month to my undergraduate loan. The breakdown is as follows: $14 principal $22 interest. Talking to a Nelnet Rep today, he was telling me that if you make an early payment then you make the following one on time, you are charged more interest because of the number of days gap between the payment.
I would really like to take a class action lawsuit against Nelnet for making a huge profit out of hardworking professional citizens of this country. I really feel that I am being majorly penalized for getting my higher education.
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