Consumer complaint received 2018-07-26
Company: Navient Solutions, LLC.
State: TX
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
Navient violated the Employee Retirement Income Security Act of 1974 when I was told that I need to use 401K funds to meet payment obligations. In addition, Navient, in regards to student loan help, will not provide written copies of agreements that can be reviewed before approval. All of Navients help  must be completed over the phone, through oral agreements, similar to prior student loan approvals with Sallie Mae, A.K.A. Navient ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 
On XX/XX/XXXX, I spoke to XXXX XXXX, a Navient representative. I called Navient because I was out of a job and had issues finding a job for medical reasons. He said there are three options but one of the three, forbearance, was no longer allowed on my account. The second of the  three options was a six month plan of interest only payments. I understand that interest only payments do not help my overall financial net value as I will effectively pay more money after the six month interest only payments are made. The third option is up to fifteen months of lower payments that are need based - the interest rate reduction program. There would be requirements, a soft pull of my credit, a financial statement, and if I had a co-signor, the co-signor would be involved I, however, paid off all the loans associated with a co-signor and this requirement did not apply. He stated my payment would be set between {$450.00} and {$470.00}. I had previously participated in the interest rate reduction program before, and my payments were much lower than what was quoted. Something didnt seem right and even with the stated range of payments my budget couldnt handle them. I also did not have an income. I have been unemployed since XXXX of XXXX. He disagreed that I didnt have income and said that I was living somewhere, that I was talking on the phone, food to eat, that I must have an income, XXXX said. He stated a spouse or parent must be supporting me in order for me to talk to him at that very moment. He said income is family money received, 401k. He said he can verify this information by looking at my credit report and reviewing my expense for rent, utilities, bills, groceries. XXXX explained that money my parents give me and my 401K should be used to pay Navient ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 
XXXX said people would budget their savings to survive, and I said yes. I asked him if I could get a copy of needs based program to review for approval and he said NO, this help can ONLY be provided over the phone, he said. First, why would my family members be indirectly responsible for my loans? And my parents do help me with food sometimes as they had recently bought me an enchilada dinner. Am I supposed to split that dinner in half and mail it to Navient? Or, if they gave me money to buy some food to eat, would I have to take a percentage of that money, not eat enough food to survive, and mail the money to Navient? I budgeted what I had to survive, to have energy to be able to look for a job once I was better and no longer in physical pain and confined to my room ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. 
Most importantly, I did not know that 401K funds should be used to repay my loans. I had no idea. Since I had basically run out of reserves, I therefore, with the direction of Navient, proceeded to cash in my 401K funds and that was how I was able to make payments for the following months. That money ran out. But what XXXX XXXX, Navient, failed to inform me was that I would have to pay taxes on that 401K disbursement as well as pay a tax penalty for taking the money out. Does he or Navient understand what position that puts an individual in that does not have a job? What about my retirement? What hope now do I have in having something in retirement? The 401K was my own personal retirement fund, what little hope I had in the future, and now, what little money I had in it, is gone in addition to tax penalties ... ... ... ... ... ... ... ... .... 
My question to Navient is why are we supposed to cash in our retirement savings in order to meet debt obligations? Is this not a violation of the Employee Retirement Income Security Act of 1974? ... ... ...  ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 
Also, why are my family members, who help me eat and sleep and help me live through my day, be indirectly responsible for loans they did not co-sign for? Why am I supposed to send the support they give me to Navient? How am I supposed to pay Navient with a dinner plate my parents purchased for my consumption so that I could go to sleep without being hungry? ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 
In addition, my legal council has told me to NEVER approve ANYTHING over the phone. I was advised to always ask for agreements IN WRITING before approving. How is it, similar to Sallie Mae, A.K.A. Navient, loan approvals, does Navient consistently require ORAL contracts as the ONLY option for loan agreements? Mind that, this particular agreement is an approval for Navient to take monies directly out of my checking account for a specific number of days.I will not participate in any oral contracts.

Company response to consumer: Closed with explanation