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Nelnet’s Approach to Addressing Third Party Student Debt Relief Companies

November 13, 2014

alertRecently, Nelnet has been receiving a number of Limited Power of Attorney (LPOA) forms from third party student aid companies.These companies are claiming the ability to reduce or eliminate student loan debt and charging borrowers fees for services that Nelnet and other Title IV servicers offer for free. In addition, some are attempting to change borrower contact information to the contact information of their company so that our borrower communications go to the third party company instead of the borrower.

When an LPOA is received in which the borrower has granted a third party company overreaching powers to manage their loans, the form is denied and a denial letter is sent to the borrower. This usually generates a phone call from the borrower, during which the borrower is apprised of their repayment options and informed that the services they are paying for are available through Nelnet, free of charge.

In addition, a weekly report is run, matching the known contact information of these third party companies to those of our borrowers. If the borrower contact information has been changed to the contact information of one of these companies, we revert to the borrower’s original contact information and a letter will be sent to the borrower explaining why this occurred. If the borrower does not have a prior address on file, we will work to obtain current information.

Individual power of attorney requests or requests made outside the domain of third party debt relief companies are still honored by Nelnet.

At Nelnet, our customers come first. We want to make sure our borrowers are taken care of and will continue to combat this issue!

2 Comments leave one →
  1. Pendleton, Laura permalink
    November 13, 2014 11:59 am

    THANK YOU THANK YOU THANK YOU!!! I have had parents and spouses asking me about these third-party companies, saying their student has been contacted for debt relief and I always tell them NO, don’t do it!! I’m so glad Nelnet is being so proactive in your intervention!!

    Laura Pendleton, M.Ed.
    Associate Director, Enrollment Services
    Financial Aid, Scholarships, and Veterans Affairs
    Pacific Northwest University of Health Sciences
    111 University Parkway, Ste 202
    Yakima, WA 98901
    Office location: Butler-Haney Hall, Room 423
    Phone 509.249.7746 | Fax 509.249.7907 | http://www.pnwu.edu

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  2. Debbie permalink
    November 19, 2014 4:05 pm

    Thank you! Do you have this information formatted for the
    borrower audience as well?

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