Consumer complaint received 2018-04-08
Company: Navient Solutions, LLC.
State: ID
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:
I am writing today because a serious error was made in my student loans that has caused many subsequent errors, and I would like for this to be corrected. In the year XX/XX/XXXX, Sallie Mae mis-consolidated my student loans. Before consolidation, my student loans were 55 % subsidized and 45 % unsubsidized. However, Sallie Mae mistakenly consolidated them at 100 % unsubsidized. 

In the intervening years, there were numerous times when I should have been able to qualify for a deferment or subsidy, but I was unable to, because my loans were mis-allocated. 

Currently, Sallie Mae, now Navient, is the subject of a class-action lawsuit because they frequently steered borrowers away from deferments they were entitled to. I believe this " mistake '' that was made on my account was even one step more egregious than that, and enters into the area of possible fraud. I would also like to be added to the class-action suit, if there is any way to do that. 

XXXX has corrected and recalculated my loans going back to the time they purchased them ; I would like assistance in correcting my loans from the beginning and then recalculating them to remove interest that should never have accrued or capitalized in the first place. 

- XX/XX/XXXX/XX/XX/XXXX : I filed for unemployment in XX/XX/XXXX. I received unemployment intermittently throughout XX/XX/XXXX. I would have filed for two 6 month deferrals. 

Documentation : 1. A signed Work Search Agreement with the New York State Department of Labor dated 1XX/XX/XXXX 2. An unemployment check stub for benefit week XX/XX/XXXX 3. An unemployment check stub for benefit week XX/XX/XXXX Correction : At least {$1000.00} in capitalized interest, plus later interest accrued - XX/XX/XXXX : I was receiving unemployment throughout the year intermittently. I would have filed for two 6 month deferrals. 

Documentation : 1. XX/XX/XXXXtax return 2. An unemployment check stub for benefit week XX/XX/XXXX 3. An unemployment check stub for benefit weeks XX/XX/XXXX and XX/XX/XXXX combined Correction : at least {$1000.00} of interest capitalization, plus later interest accrued - XX/XX/XXXX-XX/XX/XXXX : I was on unemployment both in XX/XX/XXXX and XX/XX/XXXX. I would have filed for two 6 month deferrals. 

Documentation : 1. 1XXXX showing unemployment compensation from the State of Washington for XX/XX/XXXX 2. XXXX showing unemployment compensation from the State of Washington for XX/XX/XXXX Correction : at least {$1000.00} of interest capitalization, plus later interest accrued As you can see, I would have qualified to take all three years ' worth of unemployment deferment in the first few years of my loan repayment. Since the interest on these erroneous amounts has since capitalized, the original {$3000.00} has now ballooned to well over {$6000.00} in additional principal. I would like for the loan to be recalculated as if I had been awarded the unemployment deferrals I was legally entitled to, from the beginning of the loan, and I would like for any erroneous principal to be removed from my total balance. 

As a note, I also am getting together the documentation to prove I would have qualified for at least some past hardship deferrals. As you can imagine, it is challenging to find all of the necessary documentation for this nearly 20 years after the fact, so I am beginning with the unemployment deferrals. 

Thank you very much for your help. Case numbers with Dep't. of Education available upon request. 

Note : I already have spoken to the federal ombudsman and have not had success.

Company response to consumer: Closed with explanation