Complaint / review text:
I received a disability discharge through Nelnet, which administers the disability discharge program for the Department of Education. Nelnet is supposed to tell loan holders to stop collection and return anything collected after a certain date. My loan holder (Sallie Mae/Navient) did not stop (I had autodebit). When I asked Nelnet to confirm that they had told Navient to stop and the date, I was told "we're not your collection agency." (I ultimately recovered the money on my own.)
Now I've discovered Sallie Mae/Navient has not transferred the loan to Nelnet for discharge (Federal regulation stipulates this must be done within 45 days of discharge, it has been over 200).instead, the loan is in forbearance for a year. Nelnet, of course, invited me to deal with this on my own.
The loan is accruing interest. My credit rating is affected. And Nelnet will not issue a 1099-C (the amount forgiven is taxable as income in the year the discharge is granted) until the loan is transferred to them.