Consumer complaint received 2021-04-22
Company: Navient Solutions, LLC.
State: CA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
I am writing to complain about Navients educational loan unfair tactics used to keep their payees in perpetual debt. I understand there is a class action complaint in process. I would like to learn what I can do about my situation and be included in the class action process as well. 

Some background, in XXXX, my two education loans were consolidated under Sallie Mae at a six percent interest rate and eventually managed by Navient. The original principle amount was ( {$51000.00} ). Over the past twenty years, payments were made totaling {$63000.00}. As of today, XXXX XXXX, my balance is {$40000.00}. Meaning, after making over 160 monthly payments over the past sixteen years of {$63000.00}, the principle on my loans has only reduced by {$10000.00}. Ridiculous!! 

Part of the reasoning that the principle does not decrease very much is most of the monthly payment goes towards the interest. Also, additional interest has been capitalized on top of the balance due to a few periods of time when loan was on deferment or forbearance. There were times I simply did not earn enough money to pay rent, bills, and student loan payments and I fell into a vicious cycle. Sallie Mae or Navient never gave me an option that worked with my income/debt ratio that was realistic. I had to go bankrupt in XXXX due to having too much debt and not enough income. That only resulted in credit card debt being excused, not education loans. 

Over the past few years I have been able to make inflated payments due to increased income. Only then was I able to reduce the principle a little. My efforts should have gone further than a few thousand dollars towards principle. The interest structure on these loans is what is preventing the borrowers from getting to payoff. 

Currently, I am unemployed and afraid of not being able to keep up with the momentum of payoff. I fear that will result in more interest being capitalized and the balance increasing again. 

As it stands today, I will need to make a monthly payment of at least {$460.00} until I am XXXX years old. So, I will have to hold off on retirement or win the lottery or something to get this debt off my back. It wouldnt be so bad if my payments went towards the principle. I honestly think the finance companies should not make the huge profits off of educational loan debt that our system allows for them to. 

I am anxiously waiting to see what President Biden and Congress will pass for our indebted education loan borrowers in perpetual payback, if anything. So far nothing in the works seems to pertain to my situation. 

I am asking for guidance from the CFPB. Can you guide me towards a resolution or direct me towards the current efforts that may improve my situation. Anything would be appreciated. 

I have attached files showing loan history and balance information and a transaction payment list for the life of the loan with Navient.

Company response to consumer: Closed with explanation