"So I called in a few times over multiple days to see if that problem got worked out and I would eventually get through to somebody, but that never happened," she said.On AT&T’s website and online, they suggest that you call (800) 331-0500. Some have experienced hours-long hold times to get questions answered on their repayment status, with one borrower previously telling Insider that she was put "into some kind of a loop where the automated phone service would say, 'we seem to be having some kind of a problem,' over and over." In May 2022, Nelnet laid off about 150 employees and in January 2023 it laid off another 500, in both instances citing lack of work due to the payment pause extensions.īorrowers have been struggling with customer service from a range of companies during the pandemic. The department has maintained that payments will resume this year, even if that's without relief, meaning that student-loan servicers will be tasked with the transition of millions of borrowers back into repayment, along with carrying out other targeted reforms to repayment and loan forgiveness programs.Īs Insider previously reported, the ongoing pandemic debt relief has hit Nelnet especially hard. Due to conservative-backed lawsuits that blocked President Joe Biden's plan to cancel up to $20,000 in student debt for federal borrowers, Biden extended the payment pause through 60 days after June 30, or 60 days after the Supreme Court makes a decision on the legality of Biden's relief, whichever happens first. This is the latest sign that resuming payments this year after an over three-year pause will be quite the burden. With the changes, borrowers will only be able to get ahold of Nelnet on Monday from 8am to 9pm, Tuesdays and Wednesdays from 8am to 8pm, Thursdays and Fridays from 8am to 6pm, and weekend hours are not required.Īdditionally, the Education Department raised the "abandon rate" for Nelnet, in which the company is allowed to have 8% of its customers hang up without receiving help, up from 4%. Previously, Nelnet's call center hours were Mondays from 8am to 11pm, Tuesday through Friday from 8am to 8pm, and Saturday from 10am to 2pm. These changes to Nelnet's staffing means less help for the borrowers it services - and it could prove especially challenging when payments are set to resume this year. We must adjust accordingly to continue providing value to customers to the best of our ability while also positioning the company for long-term success." "While some terms of employment end knowingly because the specific work is completed, other unanticipated staff reductions are the result of challenging circumstances that have a significant impact on the business. "Of all the strategic business decisions we must make, the rightsizing of teams is always the most difficult," Nelnet CEO Jeff Noordhoek said in a statement. The department also notified Nelnet that 1 million borrowers in its loan servicing division will be transferred to another servicer over the next few months, further reduction the company revenue and leading it to lay off 550 employees. Nelnet, in documents filed with the Securities and Exchange Commission, said that on March 22, the department made modifications to the company's contract that "significantly decreased the price earned by the company per borrower per month," down to 19 cents per borrower. Millions of student-loan borrowers are going to have an even harder time reaching the company that manages their debt this year.Īt the end of March, student-loan company Nelnet announced a series of changes to its contract implemented by the Education Department. Account icon An icon in the shape of a person's head and shoulders.
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