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Fedloan --> Nelnet; PAYE changed?

Started by joonkimdmd, April 03, 2022, 04:28:44 pm

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I have been with Fedloan since my graduation in 2014.
I have been using PAYE since then.
During covid forbearance, Fedloan transferred everyone's info to Nelnet.
I got a letter saying that the transfer has been completed.

I registered on Nelnet and found out that my first payment is due in 12/21/22, and my monthly about is about $4700.
I was paying only $900 a month because that's 10% of my income.
My income hasn't changed so it makes no sense to pay $4700 a month.
Nelnet said they know that I am still in PAYE.
Student Aid website also says that I don't need to renew PAYE until August 2022 which will take effect 3 months later which is December 2022.

Here are my questions.
Q1. If the Covid Forbearance ends in May 2022, why is my first payment due in December? Why do some people pay in May and I am not paying until December?

Q2. If they know that I am still in PAYE, why is the number almost 5 times higher than my previous monthly payment with Fedloan?

What should I do? I even called Nelnet rep and she told me that she has no idea with these questions.


Q1. It will take a few months to get everyone's account sorted in the migration. If you check back, you might see your data updated. And assuming you have Direct Loans (not FFEL loans), then yes, payments restart in May. However, if you have FFEL loans, your payments may have never been paused. If you're not seeing the correct data, you can file a complaint at NelNet, and then the student loan ombudsman.

Q2. You likely haven't updated your income in 2 years. You need to login/call and re-certify your current income to get an accurate repayment amount - if you don't recertify your income annually, your payment will default to the standard 10-year amount (which is likely much higher). You can do this on StudentAid.gov as well.