Consumer complaint received 2021-02-09
Company: Navient Solutions, LLC.
State: CO
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
On XX/XX/2020, I sold my house to move with my job and paid-off student loans with Navient in the amount of {$34000.00}. Consequently, I had a pending service connected XXXX claim with the VA. In XX/XX/2020, I was notified by the Veterans Benefit Agency that I was determined 100 % XXXX and XXXX XXXX EFFECTIVE XX/XX/2020. In XXXX, I submitted my XXXX and XXXX XXXX Discharge for my student loans. XXXX determined I was eligible and discharged remaining student loans I had. Subsequently, I learned that any student loan payments I made after that VA determined EFFECTIVE date would be refunded to the person that paid them, which is me. 

I submitted an inquiry to Navient regarding this process and was greeted with a stout denial, stating " unfortunately, if a loan is paid in full prior to being approved for XXXX Discharge, you are not eligible for a refund of payments. Please understand, Navient must adhere to the guidelines for XXXX discharge as dictated by the U.S. Department of Education. '' I responded to Navient with the exact verbiage stated on the XXXX application, XXXX No. XXXX, that clearly states in " Section XXXX : DISCHARGE PROCESS/ELIGIBILITY REQUIREMENTS/TERMS AND CONDITIONS FOR DISCHARGE - discharge process for veterans who have been determined by the VA to be unemployable due to a service-connected XXXX : ... ... ..Determination of eligibility or ineligibility for discharge. if we determine that you are XXXX and XXXX  XXXX, you will be notified that your loans and/or TEACH Grant service obligation has been discharged. The discharge will be reported to nationwide consumer reporting agencies, and ANY LOAN PAYMENTS RECEIVED ON YOUR LOAN ON OR AFTER THE EFFECTIVE DATE OF THE DETERMINATION BY THE VA THAT YOU ARE UNEMPLOYABLE DUE TO A SERVICE-CONNECTED XXXX WILL BE REFUNDED TO THE PERSON WHO MADE THE PAYMENTS. '' XXXX, a customer advocate from Navient, directed me to " Section XXXX : Definitions - A discharge of a loan due to a XXXX and XXXX  XXXX cancels your obligation ( and, if applicable, an endorser 's obligation ) to repay the remaining balance on your direct Loan, FFEL, and/or Perkins Loan program loans. '' Clearly, this is a misreading of the process, requirements and terms/conditions for discharge. The XXXX Discharge application, regarding VA determined XXXX, does not state anywhere that if the loan is paid in full there is no refund. In fact, it says the exact opposite. ANY payment made after the VA determined EFFECTIVE date ( XX/XX/2020 ) will be refunded. I have spoken to Navient twice and have received the same response reflecting the XXXX XXXX statement. 

I inquired to XXXX, the company that administers the XXXX program, and the response from them stated " Thank you for contacting us. Your loan holder will refund any payments made after XX/XX/2020 ''. When I discussed this inquiry with XXXX at Navient, she stated she doesn't care what XXXX said. 

I have also submitted a complaint to the Ombudsman for Federal Student Aid with this information. There is clearly a misinterpretation of the process or a clear disregard for it. 

Please review this information. Thank You

Company response to consumer: Closed with explanation