Print the value of index0
  • Report:  #698287

Complaint Review: nelnet

nelnet nelnet is an ripoff company indeed. unethical loan practices. Internet

  • Reported By:
    Johnny — Cashion Arizona United States of America
  • Submitted:
    Tue, February 22, 2011
  • Updated:
    Thu, June 23, 2011

trying to payoff my student loan but this company takes my payments towards fees and interest instead of the principal. 

i double my loan payments to payoff quickly but it reads in their website that my next payment is due next year but i owe them about 60 dollars today. 

when i pay more they charge more in interest and fees. i gave up trying to contact them. this is probably the same for anyone with a student loan taken over by nelnet. 

please help, i want justice.

3 Updates & Rebuttals


TheCreditor

INDIANAPOLIS,
Indiana,
United States of America

Please Review Your Promissory Note

#4UPDATE EX-employee responds

Thu, June 23, 2011

You can pay ahead 'til the stars come home. You have no pre-payment penalty.

Your complaint/consumer suggestion is common among people that don't know up from down. Any payment you ever make above the outstanding interest and late fees always goes to principal. Please note that no special request from you is needed or welcome. 

Have a flawless evening.

 


TheCreditor

INDIANAPOLIS,
Indiana,
United States of America

Here's how you do it

#4UPDATE EX-employee responds

Thu, June 23, 2011

They're required by federal law to advance your due date, when you pay more than minimum. It is common for people that don't understand student loans to think that a "paid ahead" status doesn't reduce their principle/interest/total amount owed. As of the day they got your payment, they applied it first to late fees/attorney fees/collection costs, then interest, then principle. There is no secret account hiding up there for future payments to be held unto. Once their late fees and interest are covered there is no place for your payment but principle. I hope this knowledge empowers you to make a wise choice.


Steven

Jacksonville,
Florida,
U.S.A.

When did you take out loan? Are you still in school?

#4Consumer Comment

Fri, February 25, 2011

Not sure if I understand the problem or not. Did you take out an unsubsidized student loan?

Sounds like you are just being sent a statement with the current interest .

From what I remember I was sent a statement with the quarterly interest. Paying this interest was optional and not was not required (but didn't hurt to pay it anyway).

You can pay them more than 60 dollars if this is the case and that amount would go toward the principal.

Respond to this Report!