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  • Report:  #1489153

Complaint Review: NELNET -

Reported By:
Bludwig - Parsippany, NJ, United States
Submitted:
Updated:

NELNET
United States
Phone:
8557208900
Web:
NELNET.NET
Categories:
Tell us has your experience with this business or person been good? What's this?

I had authorized several loans on behalf of my children to attend college.  Upon graduation I started the process of paying back the loans. As my finances grew stronger I paid off several of the loans. 

 In May 2018 I contacted Nelnet with teh objective of determing a payoff of 1 loan in full.  The issue for the Nelnet processor was that my most recent payment was not recognized/applied by Nelnet; it was posted but not counted??.  The processor had me wait while she determined the payoff number.  Once she gave me the number I provided the bank information and it should have been completed.

The following month I received a statement that showed a balance on the loan that i had paid off.  I waited anothe rmonth t o see whether it cleared and saw it remained open collecting interest.

I contacted Nelnet and spoke with a processor and supervisor who stated I had an outstanding balance even though they agreed the Nelnet processor possibly made an error??  I officially filed a complaint in May 2018 that apparently does nothing except supposedly helps Nelnet with their staff to perform better in the future?

Tonight while making a payment to Nelnet for my remaining loans I inquired about the old loan that is accruing interest.  The processor said he couldn't do anything but have me back pay the outstanding balance? He spouted terms and conditions that I agreed to when I started the loan but wouldn't confirm how that supposed outstanding amount was determined? 

Nor provide it in writing. and he also recognzied that there might hav ebeen an error in the payoff amnount I was given by the Nelnet processor.  He was not able to provide me with the computation that resulted in an incorrect payoff amount.  As that payoff amount included principal with accrued interest I wager they screwed up the interest amount and tried toc ocrrect it after the fact.   That is BULL.   There should be an oversight  entity that should take them to task for screwing up.

NOTE: All along I have other loans with Nelnet that I am paying down.  And wondering whether they will screw up the payoff numbers on those loans in the future.    

 



2 Updates & Rebuttals

Jim

Beverly Hills,
California,
United States
Not a Ripoff

#2Consumer Comment

Tue, December 17, 2019

The question really is did you end up overpaying on your loan?  It doesn't sound like that's what happened here; you received information that caused a short-pay of $22.00.  Did you still owe the money?  Yes.

The issue for the Nelnet processor was that my most recent payment was not recognized/applied by Nelnet; it was posted but not counted??.  That is correct.  Generally, when a payment is received, it will be shown as unapplied against your loan as a way to make sure the payment is recognized as being made on-time.  THEN, you will have a clerk who will then apply the payment against the loan.  Your payment was shown as received, but not applied.

The problem, as you indicated, is that the payoff calculation could only really be estimated by the representative you spoke to.  Obviously, the payment is then applied against prinicple and interest, leaving the correct outstanding balance.  Now, had you called the following day, or waited until the payment was applied, then you would have likely received the correct calculation.

He was not able to provide me with the computation that resulted in an incorrect payoff amount.  Yeah, that would be because the computer cannot go back and repeat the calculation once the unapplied payment you spoke about was applied to your account.

As that payoff amount included principal with accrued interest I wager they screwed up the interest amount and tried toc ocrrect it after the fact.  Regardless of how or why the error occurred, or whether it is interest or principle, you owe the $22.  It would now be stupid on your part to allow interest to accrue on the outstanding $22.

There should be an oversight  entity that should take them to task for screwing up.  Hilarious.  An oversight entity like the Federal Government that oversees all student loans?  You mean the Federal Direct Loan Program through the DOE?  You know, the entity that exists today?  Seriously, no oversight entity will regulate lenders to make sure there are no errors. 

These entities have a lot more on their plate than preventing a miscalculation of payoff balances.  In fact, the process of leaving your last payment unapplied at the time you called was implemented as a result of Sallie Mae requiring lenders to post payments to an account as unapplied so that no late payment would be recorded when the application was finally done.  In other words, processes implemented as a result of an oversight entity you wished for, caused your $22 underpayment calculation.

All along I have other loans with Nelnet that I am paying down.  And wondering whether they will screw up the payoff numbers on those loans in the future.  They might.  It depends on your timing.  If you wait until everything is applied, then you shouldn't have that problem.  If you don't, then there could be an issue with the calculation.

You were not ripped off.  Pay the $22.00.  No, I do not work for this company.


Robert

Irvine,
United States
Get off your high horse

#3Consumer Comment

Tue, December 17, 2019

The person who gave you the payoff amount apparently made a mistake..it happens.

This is $22 and you are treating it like it is $22,000. But because of this according to your narrative you have let this go on for almost 20 months? It's time to get off your high horse and just pay the remaining balance. Because even if they did make a mistake on the Payoff, you still legally owe it.

The fact that you seem to just be letting it accrue interest is really just a "bonehead" move. If due to their mistake they are allowing you to still just "back pay" the original $22 difference without intrest, that is your best option and you need to take it.

Actually, perhaps have your children pay this loan off.  $22 is a bargain for a college education.

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