Consumer complaint received 2019-07-02
Company: Navient Solutions, LLC.
State: WA
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:
To whom it may concern, Currently, I have eleven student loans. Two student loans are with Navient Corporation and are up to date. Nine are with the Department of Education and are in default status. More than three years ago my wife and I decided to consolidate our individual student loans. We both contacted Navient by phone and set up consolidation plans. All her loans were consolidated by Navient. Unknown to me, all eleven of my loans were not consolidated. Navient only took two of the loans, so the other nine sat at the Department of Education without my knowledge. I was under the impression from Navient that all eleven had been consolidated back in XXXX. 
We filed our XXXX taxes in XX/XX/XXXX. We were to receive a refund. In XX/XX/XXXX, I received a letter from the IRS stating that they had seized, treasury offset, my tax refund because I had student loans in default. I immediately called the Department of Education and I was forwarded to their collection company, Consumer Research. I found out, by phone and online that nine of my student loans were in default since XXXX, with a principle balance of approximately {$44000.00}. Added onto the principle balance an {$8000.00} service fee by Consumer research. A total of around {$52000.00} was due. 
Over the last three years, I was under the impression that I was either paying monthly payments on my student loans or when employment was part time, Navient suggested that I either defer or do a forbearance due to economic hardship. The remaining student loans at the Department of Education sat for more than three years went into default and there was no attempt to communicate that information to me by mail, email, or phone by the Department of Education for the past three years. 
When I spoke to a representative from Consumer Research, I was certified and then told that I have three options to settle my defaulted student loans. None of which I could afford, so I have been currently working with a company called XXXX XXXX to attempt to get my student loans out of default. 
The Navient Corporation is currently being sued by five plus states including Washington, who have alleged improper actions on behalf of student loan borrowers. I have recently contacted the Washington State Attorney Generals office and filed a complaint against Navient. 
For Misallocated payments Steered me toward multiple forbearances instead of income-driven repayment plans, and Provided unclear information about how to re-enroll in income-driven repayment plans Created obstacles to repayment by providing bad information Processed payment incorrectly Failed to act when I complained Harmed the credit of XXXX veterans, I am a XXXX XXXX veteran. 
The Consumer Financial Protection Agency has alleged Navient has systematically and illegally failed borrowers at every stage of repayment. 
Thank you for your time. I appreciate and am grateful for the opportunity to explain my student loan situation.

Company response to consumer: Closed with explanation