Student loan -- Dealing with your lender or servicer -- Complaint #7782375

Complaint Overview

Complaint ID: 7782375

Company: Nelnet, INC.

Product: Student loan

Sub-Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Sub-Issue: Trouble with how payments are being handled

State: Connecticut

ZIP Code: 06340

Date Received: 2023-10-31T12:00:00-05:00

Date Sent to Company: 2023-10-31T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

Hello, I have been having issues with Nelnet, my federal student loan servicer for several months now. On about XXXX or XXXX occasions since the beginning of this year, Nelnet has failed to apply my standing special payment instruction to how my auto-debit loan payment of {$350.00} was to be applied across my loan groups. In XXXX of the instances, when I called Nelnet, they informed me that because I had not caught their error earlier, there was no way for them to reallocate the payment, and that the fix would only be effective for that current month, not the prior month that was also at fault. Since XX/XX/2023, I have spent approximately XXXX minutes ( almost XXXX hours ) either on hold with Nelnet or on the phone with their customer service to try and correct these issues. Every time I call they apologize, say they have fixed the issue and to call back in XXXX to XXXX business days. Only sometimes the issue is fixed and eventually it breaks again. Once when I called back after the XXXX business days, the agent said the other agent I had talked to almost a month before hadnt actually fixed anything and there wasnt anything they could do for that payment ( XXXX payment ). Currently the following months payments were not allocated correctly in the past 6 months. XX/XX/2023 allocated to single loan group incorrectly XX/XX/2023 allocated to single loan group incorrectly XX/XX/2023 allocated to single loan group incorrectly I even switched from my legacy special payment instruction to their allocate extra by percentages option to avoid any issues with the legacy option and people having to manually allocate the payment. I have been told that since I am paid ahead almost a year, that the allocate by percentages would split my {$350.00} payment as follows across my loan groups every month automatically. It failed to work and I dont know if I have it in me for another hour to XXXX hours wait on hold. Additionally, the estimated time on hold call out on their phone system is broken so it just says you have minutes on hold while also stating you have over XXXX wait. I tried this past Monday and gave up after XXXX minutes. Note that the original payment instruction before all these issues had been in effect successfully since XX/XX/2023. It was only starting around XX/XX/2023 that Nelnets system started breaking down and my payments started being allocated to singular loan groups against my wishes. I have also made several manual payments in this time period only to make sure all the loan groups show as having a payment applied to them so that when the loan status are reported to the credit agencies, even though they are paid up over a year ahead, that Nelnet doesnt go and report me not having made a payment for the month in question which has been rather stressful.

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This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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