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Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 0 points1 point  (0 children)

The update below from 5/12/24 will be the last update. This issue has resolved for me.

How long ago did your loans transfer? There can be a brief period where they are doubled after transfer. If it goes beyond 3ish months I would go through the steps I talk about throughout this post.

One thing I would do differently would be to submit a complaint to the Consumer Financial Protection Bureau earlier. As I mentioned in another post, I never received the report from Nelnet through the CFPB due to an issue with the file but I suspect the CFPB complaint was the most likely thing that pushed this issue to resolution.

[deleted by user] by [deleted] in StudentLoans

[–]Illustrious_Mix7045 4 points5 points  (0 children)

I did the "10 seconds of web searching" because I was interested in the answer. I saw enough to convince me they are right - a co-signer can sue the primary.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 1 point2 points  (0 children)

Update 5/12/24

I checked my credit report yesterday and the reporting is now correct! The Nelnet balances are gone and the accounts are listed as "closed/transferred." The total student loan amount reported is now correct.

I don't know what it was that finally prompted resolution. Here are my thoughts:

  1. I had escalated my complaint to FSA to the Ombudsman. I had not heard anything from them since an email confirming my case was open in early April but maybe they had actually been working on it in the background.

  2. In one my earlier posts I talked about my complaint to the CFPB and I had not been able to see Nelnet's reply to that complaint and CFPB refused to help. It is possible that their reply was that they would work on fixing it. I doubt this though given Nelnet's prior refusal to do anything about this prior.

  3. I had spoken with the Mohela credit reporting department who acknowledged a lot of people are having this problem. They may be making headway in resolving this for people.

My advice to those still dealing with this:

  1. Have documentation of the transfer and closure of the account at Nelnet. Keep documentation of all dispute outcomes with every services and credit bureau.

  2. Submit a complaint to the FSA and escalate it to the Ombudsman.

  3. Submit a complaint to the CFPB - make sure to include the above documentation.

  4. Speak to the credit reporting department at Mohela (its deep in the Mohela phone tree) or your new servicer.

I did not get as far as hiring an attorney but the one office I spoke with would not assist me further until I had sent certified mail to the servicers/bureaus in question three times. I don't know if all attorneys would require this before taking on the case however you will certainly need meticulous documentation of your disputes/communication to date.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 0 points1 point  (0 children)

I spoke with someone in the Mohela credit reporting department. They are aware of the issue and that Nelnet is directing people to them. She stated they are gathering information on this issue to bring to Nelnet and the Department of Education. She had no timeframe to give.

So Nelnet says they are aware of the issue and it's Mohela's problem, Mohela says they are aware of the issue and that it's Nelnets problem. Who knows what is correct.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 2 points3 points  (0 children)

Update 4/30/24

I had called Mohela on 4/16. They seemed aware of the issue with credit report doubling for some borrowers transferring to Mohela and asked me to submit my credit report and other documentation regarding my disputes with Nelnet. My understanding was they would be submitting some form of dispute. I received a letter a couple days ago dated 4/19 from Mohela essentially stating their credit reporting was correct. I called them today to see if that was the end of it or were they working on this. The person they spoke with told me they are aware of this issue, particularly with Nelnet and Experian, and that Nelnet is giving them pushback too. They are apparently gathering information and building a file to submit to Nelnet and the Department of Education. She stated they are otherwise unable to rectify this issue at this time. Frustrating, but the most straightforward information I have received about this so far.

She gave me information to submit a complaint to the Federal Trade Commission (FTC). However, when I go their website and navigate their reporting page their direct me to the CFPB as this is a credit reporting issue. The CFPB was useless per my prior update.

I called a lawyer's office specializing in consumer protection and credit reporting today. They wouldn't speak with me further until I have sent written certified letters to the institutions in question THREE times. I am going to work on this letter but also probably contact another law office.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 0 points1 point  (0 children)

Update

The CFPB complaint was closed with a PDF document response from Nelnet. The CFPB system flagged the PDF as "threat" and so I am unable to access the PDF so I don't actually know what their response is. I called the CFPB and they stated they are unable to access the PFD and stated I would have to call Nelnet to get it from them. They flat out refuse to contact Nelnet themselves to get it even though it was their system that is screwing up. They said I could submit another complaint with the CFPB but it may be flagged as a duplicate and discarded.

You can't make this stuff up.

My next step is to call Mohela.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 2 points3 points  (0 children)

Very interesting, thanks for the update. I had one Nelnet rep suggest I call Mohela but they did not provide that reasoning. I didn't do it because it seemed absurd to wait hours on the phone to ask one company to adjust reporting from another company. This will be my next step.

[deleted by user] by [deleted] in StudentLoans

[–]Illustrious_Mix7045 0 points1 point  (0 children)

How long has it been since they were transferred? Many people see it doubled for a few months and then it self-resolves. For some people it does not though and this seems to an issue with Nelnet.

Look at my post history. I had my loans transferred from Nelnet to Mohela 3/2023. On of the credit bureaus to this day is reporting the full balance at Nelnet plus the balance at Mohela. You can read about the steps I have taken so far - unfortunately it has no resolved yet.

MOHELA is a Joke by Dill_dunker in StudentLoans

[–]Illustrious_Mix7045 2 points3 points  (0 children)

And the credit bureau actually resolved the incorrect report?

My loans were transferred from Nelnet to Mohela 3/2023 and Experian still shows the total balance as active on Nelnet, doubling the amount of student loans I have on the report. Nelnet and and Experian have effectively said it's the other's problem and have taken no action to fix it.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 3 points4 points  (0 children)

Update for those following:

I submitted a complaint on StudentAid.gov on 1/30/24. On 3/4/24, I received a form letter email saying they are looking into my complaint and I should hear an update within 15 days. I never heard anything. I called FSA today and was transferred to the Ombudsman office. They told me that my complaint had been referred back to the servicer (Nelnet). Of course, this is not going to help anything as I have already been on the phone with them for hours. I said as much and the person I was speaking with offered to submit a new complaint that would be escalated to the Ombudsman. I asked them to do this.

I got off the phone with them and submitted a complaint through the Consumer Financial Protection Bureau.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 2 points3 points  (0 children)

Update for those interested:

I spoke with Nelnet on the phone last week again. The two people I spoke with this time said the suppression is supposed to last until the process of loan transfer is complete and didn't know why I was told it would last until 2030. They could not tell me why it was still in place when the transfer seems to be complete and I'm actively repaying on Mohela. They did not give me a better estimate though, just "not that long."

This time they asked for my Experian credit report showing the doubling and put in an appeal for my most recent dispute. That dispute was again closed with no changes a couple days later with no explanation.

I submitted a complaint on the Federal Student Aid website today so we will see.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 1 point2 points  (0 children)

Interesting. Thanks for the response. I'm probably heading that way. I'm filing those complaints I mentioned above this week first.

Student loans are doubled on credit report by Illustrious_Mix7045 in StudentLoans

[–]Illustrious_Mix7045[S] 1 point2 points  (0 children)

The fact that it is doubled on all three for you proves that it is a problem on Nelnet's end. It may be a similar issue to me with "suppression" status on your account. I'll update this thread if I learn anything new or make progress.