Complaint / review text:
I applied for, and received a complete and total disability discharge about five years ago. I received notice in writing from the department of education that I had been approved, but that it would take about three years to complete.
After about four years I received notice in writing that I was in default and my discharge had been revoked. I call and was told by Nelnet that I had not returned a request for proof of income. So, I do this and the discharge is reinstated. But, at the same time one of my loans fell through the cracks, and of course it's my fault.
So, after a year or more of being given the run around my discharge is, supposedly back on track for complete, and permanent discharge. Well, the last stage of this process is for Nelnet to ask the lenders to send the loans back to them for final discharge. Well six months ago I get a letter from what I presumed was/is a collection agency threatening to garnish my Social Security benefits to secure payments of my "defaulted" student loans. Well, I call, and explain to them what the story is.
They expressed sympathy but made it clear they didn't care that if we couldn't arrive at an agreeable arrangement they would proceed with benefit attatchment. Well, I was coerced into agreeing to a very minor monthly payment of $5 per month. I know, that's nothing really, but it's the principal of the thing. I call Nelnet and ask what in the is going on.
They tell me that they requested my loans from the lenders back in August of 2014. Imagine my reaction when I discover that the collection agency that I agreed grudgingly to pay $5 a month is one of my lenders! Nelnet tells me that they requested the loans be sent to them in August od 2014. I call the lender and ask them why this is.
I'm told that they never received anything from Nelnet. Someone is lying to me. I spoke with Nelnet today. I was told that my file had been moved up the chain to have management resolve the problem.
At this point there appears no end in sight. I am trying to refinance my home for a lower payment. But, the derogatories from both the lenders and Nelnet are preventing me from accomplishing this.
Beware if you are going through a discharge like mine. Keep on Nelnets and document everything!