Consumer complaint received 2019-04-26
Company: Navient Solutions, LLC.
State: AZ
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:
On XX/XX/2017, I signed an enrollment agreement ( the " Agreement '' ) with XXXX XXXX XXXX XXXX XXXX " XXXX '' ). The total cost of the program was {$9900.00}. The cost was financed through federal student loans ( one for {$2400.00} and another for {$4200.00} ) and a private loan from AIT ( {$3300.00} ). 

On XX/XX/2017, I began attending classes. On XX/XX/2017, I decided to stop attending XXXX classes. On that day, I informed the director of training at XXXX of my intent to withdraw and that I would no longer attend classes. At no time did I personally receive any of the proceeds from any of the loans mentioned above. 

According to the Agreement I signed on XX/XX/2017 ( see attached ), if a student withdraws within the 3rd week of training, the student is only obligated to pay XXXX {$100.00} + 10 % of tuition + Books and Fees. In my case, I withdrew within the 3rd week of training and therefore only expected that I owed XXXX {$1300.00} which is {$100.00} + 10 % of tuition + Books and Fees subtracted from {$9900.00}. 

Recently, I began receiving notices from Navient and debt collectors for XXXX that I owed collectively {$10000.00} to both for loans used to pay for my attendance at XXXX. Navient claims I am responsible for paying two loans used to pay XXXX for my attendance. The first is a federal student loan in the amount of {$2400.00} ( " Loan 1 '' ) which was taken out in my name by the staff at XXXX, on XX/XX/2017, and the proceeds of that loan were sent to XXXX. The second is a federal student loan in the amount of {$4200.00} ( " Loan 2 '' ) which was taken out in my name by the staff at XXXX, on XX/XX/2017, and the proceeds of that loan were sent to XXXX. The third is a private loan in the amount of {$3300.00} ( " Loan 3 '' ) which  was extended to me by XXXX to cover the amount of tuition not covered by the proceeds of the two federal student loans mentioned above. 

The Agreement states that XXXX, as a result of my withdrawal within the 3rd week of training, was obligated to return 90 % of the federal student loan amounts I was awarded back to the Federal Title IV program. But, they did not. In addition to failing to live up to that part of the Agreement, XXXX also decided to try to collect on Loan 3 even though I did not owe that money either. 

I admit I owe XXXX and Navient {$1300.00} for the brief period of time I attended XXXX. But, I do not owe XXXX or Navient any more than that. Had XXXX returned 90 % of the amount of federal student aid I was awarded ( {$6000.00} ) back to the Title IV program, I would not owe Navient the {$6600.00} they are claiming but only owe {$660.00} to Navient. Also, had Navient fulfilled their obligations under the Agreement, I would only owe them {$680.00} for Loan 3 and not the {$3300.00} they claim. 

In summary, I only owe {$1300.00} for my attendance at XXXX. In the XXXX, if a student withdraws within the 3rd week, that student is only obligated to pay XXXX {$100.00} + 10 % of tuition + Books and Fees. In my case, that means I only owe {$1300.00} which is 10 % of {$9900.00}, the total amount of the program. 

{$660.00} of that {$1300.00} is owed to Navient per the terms of the Agreement. Of that {$1300.00} I owe, {$660.00} is owed to Navient because the Agreement states withdrawal within the 3rd week means that of all the federal aid received ( {$6600.00} ), 90 % of that amount ( {$6000.00} ) is unearned and must be returned to the Title IV program. The remaining 10 % of the amount of federal aid received ( {$660.00} ) must be paid to Navient by myself, not by XXXX. 

{$680.00} of that {$1300.00} is owed to XXXX per the terms of the Agreement. I'm contractually obligated to pay {$660.00} to Navient as outlined above. Of the {$1300.00} I actually owe for my attendance at XXXX, I therefore only owe XXXX {$680.00}, not the {$3300.00} they claim I owe. 

Had Navient returned the federal aid money to the government as they were supposed to, only a fraction of the current debt appearing on my credit report would be there. XXXX has breached the Agreement we have and has caused me damages. Additionally, XXXX has failed to follow Federal laws regulating the return of unearned student loan proceeds for a withdrawn student.

Company response to consumer: Closed with explanation