Consumer complaint received 2019-08-01
Company: Social Finance, Inc.
State: VT
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint:
I have been struggling to pay my private student loan bill and had to file a series of forbearances in order to not have my account be late/default on my loan. I called about 2 weeks ago and spoke to a customer service manager that an option for me to lower my payment would be to refinance the loan with SOFI, which would lower my interest and therefore lower my monthly payment amount. 

I applied for a refinance while I was waiting for a forbearance application to be reviewed and approved. The amount I was quoted with the refinance application was under {$700.00}, which would allow me to make my full monthly payment and not have to apply for forbearances. 

However, the application was 'stalled ' because when I connected my XXXX account to my Sofi application, an communication error between XXXX and SOfi occurred. on XX/XX/XXXX, I called SOFI and was told to call XXXX and ask that they updated their files. I debated why I should have to call XXXX when the issue was between Sofi and XXXX - I had provided all documentation and information requested of me. In the interest of time, I tried to submit the student loan documentation they were requesting manually, but it would not upload to my application. I therefore emailed SOFI directly with the information/documentation. A few hours later, I received a denial of my application - even though I was 1. told to apply, 2. pre-approved, and 3. have a very high credit score, good income, and no delinquencies on my credit report. 

In follow up emails, SOFI explained the reason was because I had not provided documentation of my income and that I had I had a bad internal credit score with SOFI due to my use of forbearances. I had provided documentation of my income, and I'm receiving a 3 % raise in XX/XX/XXXX. Also, these forbearances were approved by SOFI and I was never told that use of necessary forbearances would impact my ability to refinance in the future. Nor was this mentioned as a potential barrier when I was told to apply for a refinance of my loans. 

I'm stuck between a rock and a hard place. I'm trying to do what is responsible and necessary in order to not go into default with my private student loans. I asked for guidance on what to do to lower my payment and was told to refinance by SOFI, was preapproved, and provided all necessary documentation/information for my application. By denying my application, SOFI has essentially removed the only mechanism I have to lower my monthly payment amount. This is not being customer friendly or helpful to someone with a high student loan debt burden. SOFI is forcing me to go into default with my student loans. 

I DO NOT HAVE A CO-SIGNER nor a potential Co-signer, so do not offer this as a suggestion. I should not need a co-signer with a nearly 800 credit score making over {$80000.00} ; I was able to take out a mortgage for double the amount of what I owe in private student loans on my own, without a co-signer, when I had less income and a lower credit score.

Company response to consumer: Closed with explanation