Class Action Lawsuit For Student Debtors

The Student Debt War Project (SDWP) is currently preparing for a national level roll out of class action lawsuits on behalf of student debtors.

If you are an attorney or legal expert or someone working in the legal industry or related field and you would like to consider helping out project (either as a volunteer or paid professional), please go the Class Action Group sign-up page. If you are a student debtor who would like to possibly join with a class action lawsuit in your state, then please go the Join Student Debtor Class Action Lawsuits sign-up page (when a suit is ready to launch, you will be contacted only then).

UPDATE: See also: Lawsuits Aim To Free Student Debtors From Lifetime Bondage

30 Comments add one

  1. Tim Henderson says:

    Since graduating from Clemson University in August of 2006 and doing a consolidation loan with Nelnet because of the enticement a 6 month deferment. My loans have gone from 28K to over 56K because I was unable to find a job that paid enough to pay down the debt. Now 7 years later I’m finally going to be making enough income to start paying off the loan. I feel that Nelnet making nearly a 12% interest rate off my debt during an abysmal economy is outrageous and the loan was a case of predatory lending.

    • Mike Quick says:

      Did you not pay back for a while? I noticed that my 20,000 loan went almost all the way up to 40,000. I thought that was weird even though I was paying the whole time (after the 6 month grace period).

  2. brenda espino says:


  3. Chloe says:

    Interested in participating in any graduate school student loan class action lawsuits/ or assisting in any way I can. After 84K in student debt for an MBA program with no job assistance 2.5 years later it was a joke and Im in debt for a poor quality program that resulted in no placement for our entire participating class. My student loans were under both Stafford and Private loan programs with Department of Education Great Lakes and ACS lenders. Please write me back and advise. Thanks.

  4. chloewink says:

    Completed my $67k MBA in 2010 for an 18 month program where my actual total loan amount for some reason was $84k not sure why. However my graduating class didn’t receive many of the classes we were promised and paid for, more so their employment assistance and placement department was a joke. I’m aware that no one can guarantee employment post a degree, but to have zero accountability for a very expensive education that is already gauging students not offering that which they were promised in classes or the quality for those classes they recieved but further have no accountability or assistance in their graduating students success rate of new employment is a sham and unnacceptable. not only did my graduating class have zero placement but many prior to my class and those after our graduating class recieved the same level of quality in the program which was nill at best. I myself couldn’t leave my current job for a better opportunity i believed this program would deliver along with the skills and tools to become more marketable and knowledgable. I stayed at the same rate in salary for an additional 2 yrs then found another job on my own that after a consolidation resulted in 7 months of unemployment and mounting unnecessary debt that I could have been in the same situation for without the debt of this program that benefited me none. My lenders- 4 total stafford and grad plus loans from ACS/ great lakes/ wachovia, Dept of education. Ive paid more than half of my student loans through my parents assistance at age 33, though I still have outstanding debt. I want to participate in any and all class action suits for the full amount of the program cost and lender fees $84k+ and am happy to participate and sign anything I can in support of your efforts to fight the cycle of this injustice. Please tell me who to contact? Requirements for eligibility in my pursuits of this class action or other related actions. Email me:

  5. Pop Jennings says:

    Since leaving school for financial aid reasons, I been in defaulting, do not have a degree but I do have a hefty student loan bill with interest. I was encourage to take out a loan despite having a scholarship
    27 years later, four children, wife and unemployed now, I don’t know how to get back my life. PREDATORY LENDING COMES TO MIND. BANK & SCHOOLS are very similar to mortgage lenders lending to people that they KNOW CAN’T PAY THEM BACK. Is there anyone willing to sign on to a CLASS ACTION SUIT AGAINST DEPARTMENT OF EDUCATION & THE BANKS THAT ARE INVOLVED.

    • Theresa Overby says:

      I took out a private student loan in 2007 to go to school for LPN. I since went through a divorce and was forced into chapter 13 which is now paid off. I have just received a bill from ACS that my private student loan pay off is 67,310.13. I need help because private student loans do not qualify for student loan forgiveness.

  6. Terry Riggs says:

    In 2008, I was convinced by The US Dept of Education to have them takeover my defaulted student loan from Texas Guaranteed Student Loan. I was paying the loan, but would remain in default until paid in full. I was paying 280.00/mo. Having the US dept of Education take over the Loan was suppose to 1) remove it from default status 2)lower the interest rate 3) lower my monthly payment. Once I agreed and submitted the paperwork for the remaining 23,750 I owed the Texas Guaranteed Student loan I was instructed I would recieve the new monthly billing date and amount within 30 days. Within 14 days I recieved the new Balance of 58,000.00 and a monthly payment of 750.00/mo. I contacted the US Dept of Education and asked why The balance was 35000.00 more than my original balance of 23,750.00. The individual informed me that is what I owe and I WILL pay it. According to the Law, I have 30 days after notification of a debt to dispute the debt in writing, which I did. The next letter a week after filing my dispute I was informed the account was in collections and I now owe 76,000.00. Apparently, collections added 18,000.00 for collection fees. I again protested and requested a verification of debt. I never recieved another correspondance from USDE until July 2014. According to the law, Collection was to stop, until the matter was resolved (debt verified). The account was passed repeatedly from collection agency to collection agency and each time I re-emphasize the ongoing dispute and request a Verification of debt. Only one collection agency provided me with the documentation they were provided, which was my original documentation of 23,750.00 in 2008. Now the USDE has begun Garnishing my wages for 15% of my disposable income. They have violated Texas State and Federal Laws for the past 6 years without providing the documentation of original debt. The latest “Bill” states I owe 80,000.00, 42000,00 student loan (down from 58,000???) but 23,000 interest and 6,000. for fees. To date, I still have not been provided any documentation for the 35,000 they added to the original Balance. Additionally, they have again violated my rights as a consumer.

    • c.okeefe says:

      @ Terry Riggs
      That is terrible and I feel your pain. If you are still fairly young you might consider relocating outside the U.S. I’m suspecting they will begin to close the doors to people who have debt once the debtors who cannot pay starts quadrupling every month and people begin to exit the country.

  7. Tricia Frye says:

    I have a student loan with nelnet. I have been paying on it for year. I only owe about $3700 now but that is because I have been paying on it over many years. Granted here and there I have had to take a deferrment, foreberence or lower my monthly payment but I still have done what I needed to do every month as I should according to their stipulations. They have been great up until just recently. I have online billing and go to pay my bill and granted I would pay my bill maybe 15 days late so I would always get a double bill, however, when I would rarely go beyond the 30 day mark. I would go online to pay my bill and it would usually state I would owe one month or two. So I would pay the past due amount and then pay my next bill the next month. At this point I was on the reduced payment plan. One day I get a call out of the blue telling me I am over a half a year past due. I am in horror and shock. I go on line. Mind you I was just on there three days prior and paid my bill and it stated I owed $43.00. Now it states I owe $505. First of all I asked them if I was over a half a year past due they wait a half a year to call someone? does that seem right to you I asked the representative. Well after about two weeks of total stress and anxiety and many phone calls. They said they had to do a forebence to get me back current however, that my credit would be effected. So now I have to try and get that fixed for their stupid error. I have all my statements printed. Now I don’t trust them. Every time I go on their websit I am going to print what their screen says. SO I have it as proof. At this same time this going on I was going to try and purchase a house and my credit score was dropped terribly due to their tacking this horrible information on my credit score. I am furious with them. I wish there was more I could do.

    • c.okeefe says:

      You are better off putting the balance on a credit card. If something goes wrong you can always use bankruptcy. But if something goes wrong now, that 3700 can easily start doubling and then all those payments you have made will be for naught.

      • Irene Dudley says:

        If you can prove harm based on the credit score drop, like increased interest or denial of the home loan and can prove they were in error you actually have a case. As far as their website, it is set up to maximise capitalized interest on any loans you have and allots payments in a convoluted manner to support that. You should also file a complaint with the consumer financial protection bureau. Enough complaints and you get an investigation going.

  8. rachel says:

    They said I 10000.00 and I went to school one semester and two years ago they said 2000 and out of the blue I got a call telling me I owe this much…no calls nor a bill and out of the blue they pull this from there butts something must be done they are cheating people that are trying to make a better life

  9. Erica says:

    Nelnet lied to me on the phone about being able to make advance payments on my debt. They actually told me, when I asked them to stop advancing my due dates (which only applied my payments to future interest that hadn’t even accrued) that this was impossible. I found out through online research that I just had to check a box when making a payment that said not to advance the due date. Sure, I should’ve just poked around a bit more to find this box, but I still can’t believe they would lie to me and say it couldn’t be done instead of helping me deal with their site.

  10. I have been fighting for over 20 years for a student loan that’s not my loan. I sent letters I received from the Department of Education having no records of me attending a school. Yet they paid off theloan with my income taxes money over and over again. I would love to join the class action llaw suit.

  11. Sue Jones says:

    I really have no clue what Nelnet does, every time I look at my account the details are scarce. I have been paying for well 10 years and I believe my balance hasn’t changed at all. I to added additional payments for quite a while and never saw any little box. The payment was equal to or darn near close my payment – I just kept paying it – one day, to find out my balance, finally logged in – I was actually paid up for almost a year! So, no – it didn’t go to principal and I thought way back then, I had an option to apply to principal – it went to pay forward so they were getting the interest regardless. Some time ago, they used to offer calculators where you could see what your different payments would be. I had graduated payments due to low pay and trying to buy a house. I have asked for an amortization schedule of my loan and have never received it. My statement tells me nothing, now the site tells me nothing and there isn’t even an option to see what my payment options would be. I wonder if I could even change now or do they lock you in forever screwing you until you pay it off? I admit, it is my fault for not paying attention and just paying each month, but when I have tried to find out information from them, I get nowhere and I guess I just give up. I think my interest about equals my principal now – at 4% that just doesn’t seem right? At least I am not alone!

    • Irene Dudley says:

      No they should not be doing that. File a complaint with the consumer financial protection bureau and send your documents.

  12. Cory Troupe says:

    After I read Sue Jones comment, I think I have figured this out. Look up Class Action lawsuit in Illinois and Connecticuit I believe. In Illinois three loan providers were sued heavily for applying payments to future (imaginary) interest instead of the principal first. If they had just paid it to the principal, there would BE NO INTEREST IN THE FUTURE!

  13. as a parent pus borrower who is disabled and who informed the school of this vary early on and submitted them with information, they went ahead and started the process while before talking with me of any ways to help me deal with future debt. After putting me off with no answered phone calls and stalling my daughter who had attempted to seek information for scholarships and aid i am stuck with bills that had too be either deferred or in forbearance,. now the time as run out and i have nothing to offer them..i had tried discharging the loans but was put off time after time with six different reasons why. i have kept all my my answers from Sallie Mae and had spoken with the DOE over this some years back. offering them one hundred forty dollars a month which was not acceptable. I feel that the school. the ART INSTITUTE and the DOE along with Sallie Mae had jobbed me and my daughter. I feel that the loan officer wear more interested in filling her pockets with a bonus then helping her get an education. My daughter feels that she was unqualified to use the education after four years of fighting off Sallie Mae and the school to make payments. She lived on her own and a Perkins loan was turned down by the school for her. I was told by the school, when i tried digging into it, that it was none of my business. I think Sallie Mae along with the school needs too be dealt with in a class action suit because i have heard of other complaints on this. The DOE has no record of me speaking with one of their ombudsmen so they say..i have her name written down also as well as the business cards from the Art Institute personnel i spoke with at the time. the figures they use for the loans are questionable.

  14. John Shorette says:

    I had attended The Art Institute of Pittsburgh (Online Division) from the Summer of 2006 to the Fall of 2010 and within that time occurred 35,209.28 in debts. I just found out about all of the lawsuits that have been going on in the last 5 years with Sallie Mae, AI, and EDMC. Is there anything I can do to have anything done about this dept? When I joined AI, I had wanted to go into their Game Art & Design course, but they told me that I had to have a portfolio in order to do so and that I should start in the Graphic Design course. I started to become very discouraged after I was over 3/4 completed the Graphic Design classes, and due to my mental stress and dissatisfaction that I was not in the field I wanted, I had to leave the school. Now About a year ago they started to call me and email me asking if I was interested in coming back to them to finish the degree. At that time I then find out that they dropped the Portfolio Requirement of the Game Art & Design course some time ago. I feel very cheated because of all of the time wasted supposedly having to do the Graphic Design courses and racking up the debt that was unnecessary. Due to my financial situation I have no way of paying the debt off and all this time interest is continually being tacked on. Do you have any suggestions or can help in any way? Please email me back if you know of anything.

  15. J Wumkes says:

    The first predator was the college.

  16. Sirs
    I welcome lawsuits against nelnet.
    In 2002 Sally Mae had an identity theft of my account and U S Postal Inspectors/Police investigated and Sally Mae promised that their insurance would pay off the loan, but then they didn’t.
    My student loan has been discharged three times then renewed. Then Sally Mae changed collection companies to ECMC, and guess what, yes two crooks and an ECMC employee stole my Identity again.
    Now NelNet attorney Kevin Keel wants to talk with me.
    I want action not thieves stealing my info and I want to see a Liability policy that pays.

  17. Val says:

    PLEASE READ…I had filed for a Student Loan Discharge in 2008 due to the fact I was considered “disabled” from 2003 on. There were 2 stages – “FIRST” the app had to go through NY State EDU and then go onto DEP of education. I was passed through the first part as forgiven, then the U.S. Dept of EDU turned it down. I never understood why, nor did I know any of this. in 2014, I had applied again for the “Forgiveness” and while waiting, I asked why I was turned down in 2008 – (nothing had or will ever change in my situation! I had done some research on the web only to MANY, I mean MANY student loans (for people with disabilities) were turned down between (I believe it was 2004 – 2008)because the applicants DR’s didn’t reply. I asked for ALL my records U.S.EDU had, I found that my DR “Did in fact reply” and with in the time frame! When I called them and then the ombudsman, I asked told them my Dr did reply, they said that “that specific Department of EDU was dissolved and I had to go through “Nel Net” They would not send me the documentation for the reason of turn down, they said they didn’t have the reasons in their records bc that department was no longer around. After the research I did, there were so many applicants in my situation that were turned down for the same reason, BUT their Dr’s did reply as well. I saw where they were “Reworking the apps from before and up to 2008 – when I called the U.S Dept of EDU they basically dismissed me. I have all the records, I can see my Dr and I did the right thing with all the paperwork! I would like to start a Class Action Lawsuit. I would like ANYONE who was given the SAME reason as I was, to GET their Dr. records from that time and were turned down. The U.S department really screwed up (or purposely did it) and they are NOT owning up! Something NEEDS to be done to “back date the forgiveness apps”! My student loan interest had built up and they were garnishing my SSDI check for almost 3 years before finally being forgiven! If you are in this situation – LETS STAND UP AGAINST U.S Dept of EDU. Power in numbers – lets make this work! PLEASE EMAIL ME. Sorry if some of this is redundant – I am just exhausted while writing this. Thanks all and Look forward to hearing from you. I know I can’t be the only one in this exact situation – (the articles I read weren’t just people spouting out at the mouth) the articles were from actual statistics of findings for a government agency!

  18. Jill says:

    I took out a total of $34k a very long time ago (I’m 44). As of right now, I’ve paid back $30k. I CURRENTLY OWE $65k!!!!!!! My payment each month is $325. My interest is $10/day!! How is that legal?

    • admin says:

      The STDWP has proposed a Bill to Congress that would: 1) limit the maximum loan amount per year (so colleges can’t keep increasing tuition to meet it for their own greater profits), 2) would eliminate all interest, penalties, 3) would eliminate minimum payments on student loans until a student is working full-time for 1-year or more, 4) all payments would go to principal. We did this because studies show it would save the student loan system from collapse and ensure most loans are eventually paid back (as well as help reduce the amount of debt needed for college in the first place). Currently, nearly all monies paid to to debt collection agencies go to debt collectors, not the loan payment. College should not be a profit making institution but the fact is, the whole system preys on student debtors now. The fed gov does not need to earn interest on student loans. Most students get in trouble because of the mounting interests and penalty amounts—they want to pay back their loans because they believe in college and higher paying jobs that come from it—it’s suppose to be a good deal (and it would be if the system were not being exploited by special interests (colleges, lenders, debt collectors, etc.)–all of whom rake off billions of profits yearly off the backs of struggling students and their families. Our Bill proposal could not get one person in Congress to support it. And we do not have the funds needed to counter that with major, organized, grass roots activism pushes that would pressure law makers to do what is needed to protect students.

  19. kenneth hearne says:

    does anyone a law firm who may be sueing nelnet for unfair practices?

  20. Kathy Clark says:

    My son incurred $150,000 in student loans. He wants to pay the debt but the interest is accruing so fast that he will never be able to pay off the debt. He has already paid $30,000 but only $5,000 in principle. the University of N Dakota required us to second 2 loans even though he was over 18 and on his own so he didn’t qualify for any Federal grants. He originally had earning potential but was RIFTd out of the Air Force. Now he is working 2 part time jobs and the lending agencies are coming after us for his student loans. i fell we were completely mislead and misinformed. We want to pay the debt but it is unrealistic to pay with the intrest accruing faster than the speed of light.

  21. I am an attorney who has filed a suit against Affiliated Computer Services / Xerox Business Services for their collection action on Sunday. This is an illegal action, but it will take joint participation to make it work. Please contact me if this has happened to you. Our office is in Memphis, TN. The office number is 901-526-7837.

  22. Haili Brown says:

    YES. PLEASE file the suit!!!! Same scenario…postponed payments while I could not afford…my loan went from 20,000 to 40,000! Now I’m just against paying because I think it’s criminal to do that to us when we are barely adults agreeing to these terms. And had they told me I will be paying double, I would have denied the loan. Trust me…there are millions of student loan victims willing to join the suit. Like probably everyone.

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