Domina Law Group has filed a new Class Action Lawsuit against Nelnet, Inc. and its subsidiaries on behalf of student loan borrowers who suffered damages due to delays, processing failures, and capitalized interest.
OMAHA, Neb., June 17, 2020 /PRNewswire/ -- Five student loan borrowers from Illinois, Missouri, Texas, Colorado, and Michigan have filed a comprehensive Class Action Lawsuit against Nelnet, Inc. and two of its subsidiaries. The Class Action – Case No. Case No. 4:20-CV-03069 – was filed on Monday, June 15, 2020 in Federal District Court in Nebraska.
According to the complaint, all five student loan borrowers claim they suffered damages after interest on their Income-Driven Repayment Plans ("IDR plans") was capitalized, the total loan volume increased, and benefits of their IDR plan were diminished when their applications or renewals were delayed.
Per court documents, all five Plaintiffs allege that after enrolling in one-year IDR plans serviced by Nelnet and its subsidiaries, they submitted the necessary documents to certify or recertify their income level and family size, sometimes multiple times. Despite complying with documentation requirements, the lawsuit claims, they were met repeatedly with excuses, delays, and a lack of processing attention.
While two of the five borrowers qualified for forgiveness programs based on their employment, they say they're now required to work months or years longer in order to meet qualification standards because of Nelnet delays. The Plaintiffs contend that Nelnet's conduct at the core of their complaints constitutes a pattern of improper activity.
Domina Law Group joined forces with Chicago lawyers Dan Edelman, Cassandra Miller, and Anthony Fiorentino to file the case.
Potential Class Members Encouraged to Contact Firm
The lawsuit against Nelnet identifies proposed Classes: a Breach of Contract class, a separate Negligent Misrepresentation class, and classes for the individual states where the Plaintiffs reside.
All classes include persons with federal student loans serviced by Nelnet who, at any period within the previous four years prior to the lawsuit filing or after:
- Were enrolled in an IDR plan;
- Timely submitted an application to renew the plan;
- Had their application eventually approved; and
- Had their IDR temporarily discontinued by Nelnet while the application was pending.
Given the scope of America's student loan debt, and the fact that Nelnet serviced at least $162.5 billion for six million student loan borrowers in 2016 alone, the Class Action may potentially include hundreds of thousands of student loan borrowers across the country.
Federal student loan borrowers who have interest in becoming a Class Member are encouraged to contact Domina Law Group. A questionnaire for qualification will be provided.
Domina Law Group is a nationally recognized Civil Trial Practice that's helmed landmark litigation on behalf of the injured and the wronged, often against powerful corporations that value profits more than people. More information about the firm's award-winning trial lawyers and record of success can be found at www.dominalaw.com.
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