Consumer complaint received 2021-03-23
Company: Navient Solutions, LLC.
State: NY
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
During the month of XX/XX/XXXX, 2 months before my new repayment period was scheduled to begin, I submitted an economic hardship application per then Sallie Maes instructions, only to receive a letter back, weeks later, informing me that I applied too early. The representative I spoke with prior, never mentioned a time frame in which my submittal had to adhere to. This incomplete response to my inquiry was the beginning of what would turn out to be a very cumbersome, contradictory and fraught process. 

I then filed out subsequent documentation that was sent to me and submitted accordingly. For the next few months, I received nothing but inconsistent and inadequate information as the process stumbled along, eventually leading to a letter from NYSHESC, sometime during the spring. It advised me that my account was in jeopardy of default. It was in this letter where I first learned of an option that was income related. Although I applied for the IBR plan in XXXX, I kept receiving conflicting correspondence from XXXX. I actually received one letter instructing me to apply for a deferment, while another thanked me for inquiring about the IBR, both with the same date. There was one instance where I was sent a pre-populated IRS form, which I needed to sign and sent back so my tax return could be obtain directly from IRS, only to later received a follow-up letter from XXXX stating that these document can not be retrieved from IRS. No reason was given as to why this was so. I was then instructed to submit my tax return directly to XXXX. Even though I had already submitted my tax return back in XXXX. By this time I had completed my next year tax return which was indeed different from the previous year one submitted in XXXX, so I went ahead and submitted the newly completed tax return as well. Around this time, I began receiving delinquent notifications from XXXX threatenng to report me to the credit agencies ( it wasnt just a threat ) and instructing me to get in touch with them, even though I was already in touch with them through this process. It wasnt until NYHESC got involved for a second time in the fall that the process moved forward. Unbeknownst to me, during this time my account was racking up quarterly/monthly capitalized interest including {$5900.00} on XX/XX/XXXX. 
I was finally place in an IBR, in XX/XX/XXXX, over a year from my initial economic hardship application. 

There is a capitalized interest in the amount of {$5900.00}, added to my account on XX/XX/XXXX. What I want to know is, 1 ) If the amount I paid on XX/XX/XXXX was sufficient to cover all monthly payments until XX/XX/XXXX, why was my account charged {$5900.00} capitalized interest on XX/XX/XXXX in this amount? 2 ) How did that much interest accrued during this paid-ahead period? History of the account shows prior capitalized interest were added to my account only at the end of a forbearance period in which I wasnt paying anything, but never at the end of a period in which there were payments made, especially paid-ahead payments. 3 ) And why throughout the rest of the year I kept racking up additional capitalized interest with that much interest already capitalized in XXXX? I do understand that interest can be capitalized yearly OR quarterly, but I was unaware of interest being capitalized both yearly AND quarterly and in one instance 2 months in a row. All negative impact that occurred on my account for this year had nothing to do with my lack of responsibility or efforts, but rather everything to do with your corporations inconsistent, inadequate, insufficient instructions. I should not have to be the one to bear the brunt of this ineptness.

Company response to consumer: Closed with explanation