One of the largest and most widely used student loan servicing companies in the nation is Nelnet. Nelnet acts as a servicer between a borrower and the loan provider. The United States Department of Education provides the loan itself and contracts companies like Nelnet to service these student loans. Prior to the financial reform of 2012 which adjusted the procedure of originating student loans, Nelnet held more than $25 billion in student loan debt making it one of the largest servicers in the country.
Many borrowers of student loans don’t realize that firms like Nelnet are just as powerful as the government in terms of student loan management. The US Department of Education contracts these companies to pretty much handle everything about student loans. Servicer do everything from taking and applying payments to transferring debt to other servicer and even have the power to report defaulted payments to credit agencies and come after borrowers in default.
Nelnet performs business as more than 50 different subsidiaries in the United States and Canada. As a result, many student loan borrowers don’t know that their loans are owned by Nelnet. Some examples of its larger subsidiaries include LoanSTAR, infiNet, TriCura Canada and inTuition.
Legal Issues and Servicing Problems with Nelnet
It’s no surprise that Nelnet is not particularly popular among borrowers of student loans. For many years, Nelnet has been steeped in controversy concerning the processes which it uses to handle student loans. The company was accused in 1993 of implementing a tax loophole to create profits of more than $1.2 billion dollars from the student loans that it managed. The company was also accused in 2007 by the states of New York and Nebraska of performing industry kickbacks and issuing gifts to universities and colleges which convinced students to sign up for Nelnet loans.
The company also received claims of student loan subsidy mismanagement. Nelnet eventually settled out of court with thousands of borrowers over the years from claims of improper management of student loan programs.
Some examples of common problems student loan borrowers have experienced with Nelnet include:
- Receiving repayment data that is incorrect
- Difficulty with registering for new programs
- An inability to consolidate prior federal loans
- Slow or no action from the student loan company after filing a complaint
- Difficulty with accessing the lower interest rates that some student loan companies normally advertise as a reward for making your payments on time
- Receiving subprime private student loans that have high fees and rates attached
How to get help with student loans from Nelnet
This is where National Debt Education Relief can help! We have worked with thousands of people with unaffordable Nelnet student loans that have had plenty of the above issues and are fed up! You aren’t stuck with this burden, there are multiple options that can help lower you monthly obligation. We can help you get into a Nelnet Student Loan Consolidation program that can effectively lower your monthly payments as soon as your next one is due! This allows you to consolidate everything into one easy to manage monthly payment based on different factors from income to family size and occupation. Forgiveness programs for these types of loans can also help reduce how many payments you pay over the life of the loan all while paying less each month! You can call one of our loan specialists or fill out the form to check your eligibility today!
Easily Reduced Their Payments!
Federal Student Loan Forgiveness Programs
Loan forgiveness programs are just what they sound like, a portion of the loan is forgiven after time. These programs exist for people that work in multiple fields from education to health care to public service and more. After a fixed number of payments, the remainder of your loan is forgiven completely!
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