June 19, 2020
(I don’t give permission for my name to be posted on your site and/or with this question. An initial is fine though.)
I graduated college in 1990 with a teaching degree and roughly $15,000 in student loan debt.
In my first few years of teaching it was a struggle to make ends meet so I did a lot of years forbearances. (I barely made $15,000 in my first years of teaching.)
I also consolidated my student loans with Nelnet back in 1992.
I have never defaulted on any school loans. Along the way I also received about $15,000 in teacher forgiveness money.
Fast-forward to 2020…..I am currently 53 years old. I have paid Nelnet $58,511.72 total for a $15,000 student loan and they say I still owe them $20,962.06!!
This is egregious but Nelnet says because of the terms of the promissory note they cannot forgive the remaining amount owed.
I also wonder if they have kept accurate records for this loan. I am thinking of asking for an audit.
But on the other hand I did not submit the yearly paperwork for IBR continuance. If I do my payments may go up.
At this point should I (1) Just continue paying as is. I am on an IBR and I pay $275 per month. Also, if I pay extra should I NOT click the button that says:”Do not advance due date”. I am not clear on the advantages or disadvantages of clicking that or not clicking.
(2) Should I try to get a credit union loan at a lower interest rate and pay off Nelnet ? (current interest rate is 9%)
(3) Should I try to fight to have the remaining amount forgiven or the capitalization reversed–is here a way to have the capitalization reversed that you know of?
Thanks in advance for any help you can provide.
May 3, 2014
How many years have you been on IBR?
Before making any decisions, I’d want to know how close you are to qualifying for Public Service Loan Forgiveness.
As for the capitalization, I don’t know of any way to get it reversed. It could potentially be forgiven as part of PSLF, but once it is added to the principal, I don’t know of any way to have it removed.
I also think an audit sounds like a good idea. You might consider filing a complaint with the CFPB if you think they have done something wrong: https://studentloansherpa.com/file-compliant-student-loan-company/ These complaints tend to get more attention from lenders than a standard call to customer service.
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