This morning I checked my email and received one from a company called Nelnet. This company claims that they will be my "student loan servicer." What this apparently means is that they will be collecting my Stafford loans on behalf of the US Department Of Education. I was surprised by this, so I decided to call the DoE. Their automated system confirmed what the email said. My loans have been 'transferred' to Nelnet, I suppose? I'm not sure how that works. But after all the horror stories I've heard about private student loan companies, I figured I should look them up.
I'm glad I did. Nelnet is a shady company. They have multiple complaints on Pissed Consumer and RipOff Report. People report constant overcharges, mystery charges, ridiculous interest rates and incredibly poor customer service. Nelnet were also sued under the False Claims Act by a former employee at the DoE for artifically increasing their returns using a weird loophole in the law. The case was settled out of court.
This is absolutely ridiculous. I've called the DoE and left them a voice message and also contacted them on their website, to let them know I do not trust this company and wish to make alternate arrangements. No, I'm not naive - I know they'll probably blow me off. The fact that they weren't barred from doing more business with the government after that little "ripping off the government" thing shows how in bed with the DoE Nelnet is, I suppose. The truth is, I don't care. I am not inclined to work with a company that seems this untrustworthy. This is not a refusal to pay my loans, only an expression of strong doubt about paying them because of their unsavory reputation.
Which is why I'm writing this diary. I have no idea if I can win this fight, but I'm going to fight it as well as I can. I do not trust this organization, and I have no idea how I can keep them out of my life, but I have a feeling I'm about to find out. I'm going to record anything I learn and discover here, so that maybe others can use that knowledge to protect themselves as well. We're stronger when we work together, after all. I'm also happy to accept feedback and maybe attorney recommendations if you have them.
Here we go.
