Wierd lending practices

[collins135]

Ok, so called Nelnet to consolidate loans and tried to consolidate private loans also to nelnet so I make one payment. Nelnet tells me my private loan is not eligible because of the default rate at the school i went to was too high. the default rate being the percentage of students that defaulted on a SL from this particular school. He tells me the year they are looking at is 2002. I never even went to the school that year nor have i been late or defaulted any student loan and yet because other people have defaulted on their student loans then I can't consolidate my loans. This is crazy and I told him I didnt see how that was good business practice or an indicator of how I would pay this loan. But he said this was the first thing they checked and to call back in september when the DOE updated the default rate. I said no thanks I will go to my cu and get this loan through them since I am sure their underwiters do not look at the default of others to base a decision on MY loan.

[LynnInMN]

This is standard operating practice. Cohort default rates affect a lot things including eligibiltiy for student loans. A new lender won't want to take on a borrower from a school that typically has a high default rate...especially with private loans.

 

Your CU may well not want to touch it either for the same reasons. They have access to the same data banks.

[collins135]

This is standard operating practice. Cohort default rates affect a lot things including eligibiltiy for student loans. A new lender won't want to take on a borrower from a school that typically has a high default rate...especially with private loans.

 

Your CU may well not want to touch it either for the same reasons. They have access to the same data banks.

 

Well this is the bumbest sh** i have ever heard. I am being punished because i went to a school where other people decided not to pay their stuff in a year that I didnt even go there. Not to mention the fact that I graduated from a much more reputable school. I only took two classes there. he said the other years look good but the 2002 was high. So for one year of people not paying I will be stuck with 17.5 intrest rate. until the people pay up i am stuck. Great just great.