Consumer complaint received 2019-06-16
Company: Navient Solutions, LLC.
State: WA
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:
Navient is my student loan servicer. 

Here is what happened : On XX/XX/XXXX I set an " overpayment '' of {$500.00} to my direct, unsubsidized loan. 
On XX/XX/XXXX I set an " overpayment '' of {$500.00} to my direct, unsubsidized loan. 

I am currently on monthly " autopay '' and noticed that the {$1000.00} did not go toward an overpayment toward my load on those two days, but instead went toward the MONTHLY payments. 

As a result, {$1000.00} went toward MONTHLY payments, for several months in advance. This way Navient used all of my {$1000.00} overpayment for INTEREST, or company profit, rather than the PRINCIPAL of the loan I'm trying to pay off. 

Pasted below in this message is my payment information since XX/XX/XXXX, showing that the two overpayments of {$500.00} resulted in NAVIENT NOT charging monthly autopayments after my two   overpayments of {$500.00}. Please keep the pasted payment information so that other graduates can see exactly what this looks like, for themselves. 

Desired solution : If possible, I would like to re-allocate the excess {$1000.00} to the PRINCIPAL of my loan, so that it does not touch Navient/Interest. I've contacted Navient by email about this issue as well. 

Research about this Navient loan servicing problem : I've found that my exact scenario is one of the reasons that CFPB sued Navient in XX/XX/XXXX: The second quote, from " XXXX '' describes my scenario. 

XXXX XXXX  XXXX " Borrowers aiming to get ahead on their loans by making extra payments may also have been burned. The suit alleges Navient often processes such payments incorrectly, resulting in late fees, interest charges and negative reports being sent to credit reporting agencies. " " For federal student loans, regulations stipulate any extra payment goes first to outstanding fees ( like late fees ), then to interest accrued since your last payment, and then to the principal of the loan, said XXXX  XXXX, director of consumer outreach and compliance for XXXX XXXX XXXX, a nonprofit focused on higher education financing. Sometimes private loan servicers will apply any over-payment to your next months payment instead of the principal, XXXX said. XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX   Loan Due Date Amount Status Auto Pay Show more information 1-03 Direct Loan - Unsubsidized XX/XX/XXXX {$0.00} Scheduled Total Current Balance : {$10000.00} View all Loan Details Please note : This is an attempt to collect a debt and any information obtained will be used for that purpose. 
Recent Payments Date Amount Status Coming From Show more information XX/XX/XXXX {$110.00} Auto Pay Bank Acct XXXX Show more information XX/XX/XXXX {$110.00} Received Payment was received -- Show more information XX/XX/XXXX {$22.00} Received Payment was received -- Show more information XX/XX/XXXX {$500.00} Received Payment was received -- Show more information XX/XX/XXXX {$500.00} Received Payment was received --

Company response to consumer: Closed with explanation