SUBMIT A COMPLAINT

Nelnetnelnet profiting from middle class people

1
R

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.

Responses

  • St
    studentloanpoor Feb 01, 2013

    I just got off the phone with Nelnet for about the 100th time regarding this same thing. My $30, 000 principal hasn't changed in over 8 years. Every payment made to them has "to satisfy the interest first". I have paid above and beyond the payment on many attempts to pay down the principal, only to be told that $1 went to principal because of interest accruing daily. I have asked how to specifically deem certain over payments to go to principal and have been told, "Oh, you can't do that". I have basically flushed all my money over the past 8 years down the drain. I am so angry and physically nauseous from this reality. I was just told that by changing from a J plan to an A plan, I can increase my payment by $80/month and pay down the principal. However, let it be understood that for years, NO ONE told me that, NO ONE!! It would cut into their profits if I ever paid it off. I started telling them that they are in fact, loan sharks and what they do is illegal and fraudulent. They don't care though, because when you have $55 million to pay off a court case, who cares? I can not see a light at the end of the tunnel and don't trust them when they say that by changing payment plans that it will be paid off. If I had had a car for $30, 000, it would have been paid off by now. But my student loan with the crooks at Nelnet, hasn't even changed the principal in 8 years.

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