Consumer complaint received 2019-10-04
Company: Navient Solutions, LLC.
State: CA
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:
Official Navient Complaint Student loans for accelerated BS program at XXXX  XXXX University went into repayment on XX/XX/XXXX. 

After receiving notice my Student loan grace period was ending soon, I went online on XX/XX/XXXX to the FAFSA website to find re-payment options. 

I was confused and intimidated, I filled out the IDR plan application and used the IRS data retrieval tool to submit the required support documents, I allowed FAFSA to choose the best payment plan option for me. 

The very next day, XX/XX/XXXX, I received a bill for {$350.00}, due to my service provider, Navient, on XX/XX/XXXX I felt panicked. My poor financial state and lack of consistent income was not something I saw ending in the near future. I thought maybe my application had been processed, and this was the best offer I was going to get. Desperate, I contacted my service provider Navient, that very same day. 

I tried to describe my situation to the Navient representative who answered the phone. I wanted to know if she knew the status of my application and asked her to advise me on my options. 

Because of my own ignorance, and overwhelming intimidation at dealing with this large loan, while in such a horrible financial state, I trusted that with the detailed information I offered, I would be given the advice that would help me to pay my loan, and that my best interest would be considered. 

I cant paraphrase the conversation, as it was a long time ago, but I asked a lot of questions, and my take away from the suggestions offered was that the IDR plan was a bad choice and given my situation, the lowest paying option would be the graduated repayment plan. ( Now that I have taken the time to better understand the whole student loan situation and the options, I realize how the graduated option, was neither the cheapest payment/month and was the absolute worst option possible. ) Wanting to get a plan in place, I took the Navient Rep advice and was enrolled in the graduated payment plan, on  XX/XX/XXXX. My first payment would still be on XX/XX/XXXX, but the amount would be {$120.00}. 

Even though in XXXX, Navient had sent confirmation that they knew my email had changed, most of the emails they sent, often used my old email address. Because I thought the phone conversation was reliable, and the information I was given had included the IDR plan options, I had not expected that on XX/XX/XXXX, I would receive an email notifying me that I was accepted into the REPAYE plan, and my monthly payment would be {$00.00} ... so I had no knowledge of this. 

I didnt know that the reason my XX/XX/XXXX bill was {$0.00}, because I had been accepted into the REPAYE plan, and when my XXXX  bill was also {$0.00}, again I panicked, thinking I had made some huge mistake. 

Concerned about the {$0.00} bills, I called Navient on XX/XX/XXXX. I did not understand what was going on and knew that interest would be a building issue. Confident that the advice given to me by the Navient rep on XX/XX/XXXX was valid, and without the knowledge of the aforementioned change into the REPAYE plan, my concerns continued to build. Again, I turned to Navient for helpful advice. 

On XX/XX/XXXX, I called Navient. The rep did little to clarify my options or defining my, then-current, repayment status. Not realizing that my interest would be capitalized, or that I was choosing to opt for the REPAYE plan benefits, that may have helped me to avoid huge penalties, I have suffered, I agreed to re-enter the graduated repayment plan.

The graduated plan is in no way a smart move. My best guess is that it exists for people who need a lower payment, that does not qualify for any of the IDR options. Now that I have educated myself on payment options, pushing me toward this option is ethically questionable. I thought they were trying to help.

These practices alone are deplorable, I would think that at some time, my desire to pay my bill, would encourage some ethical support from Navient, but I have lost any hope of that happening, as every time I trust them to act with integrity, I get taken advantage of. 

I was paying the XXXX month in the graduated repayment plan and there be little or no change in the principle for months at a time In XX/XX/XXXX, I took on a contract delivery job to help in my still desperate financial situation. The delivery program had a deal with a rental car service that allowed drivers to rent cars at a discounted rate. But even with a discounted rate, simple math made it clear that monthly car payments and insurance would be cheaper than what I was paying out in a month for rentals. Plus, I couldnt get a parking pass for a rental car, and I got more than one parking ticket. 

That said in XXXX, I had to ask Navient for a deferment, ( hindsight- if I would have stayed in the REPAYE plan I would not have had to ask for the deferment that is just one of the stresses that I would have forgone, had just one person listened to me, my situation, and cared enough to better inform me. ) When I got hit with my interest being capitalized a third time, this time for $ XXXX, in XX/XX/XXXX, the intimidation I had for the loan program was replaced with my personal survival and learning how to stop my credit situation from taking over my life. 

My first plan of action was to dent the principle that even though I had been paying on these loans while I was still in school, never seemed to decrease, only increased at times of capitalization. 

I was paying the total I owed every month, when I looked at my loans, ( 6 of them ), in detail, I realized that depending on what day of the month I paid my bill, my monthly payment may not even cover the accrued interest on the account, much less contribute to my principle. 

I became hyper-vigilant and dedicated a notebook to record my every payment, starting in XX/XX/XXXX. The way that Student Loans are designed, they make it impossible to get ahead of it. I have had loans in the past. Now that I understand the dynamic, I may have never gone back to school. Even if I pay more than I owe. I get charged interest every single day, and they will not apply the overpayment to future interest. It is scandalous. But that is my fault I just wanted to go to school, I shouldve been more cautious.

I finally cracked the code, even if I couldnt afford it, I started paying a little extra to reduce my principle. Sometimes it would only be a dollar, sometimes, I couldnt afford it, but I made sure that I at least covered the interest owed at the time of payment. It was a lot of work. I would have to go to the website, figure out the minimum payment due for each loan, make sure that was covered, and then figure out the interest, etc. 

It was going great, but then I quit my part time job in XX/XX/XXXX, and now I was forced to educate myself on the IDR repayment plans, as I had heard ads that there were options for people in my situation. 

It took a while, but as I understood it the REPAYE plan was ideal and suited to someone in my exact situation. On XXXX, I went to the fasfa website, this time confident of my intention and eligibility. I again used the IRS data retrieval tool to submit the required documents. 

I was devastated to see that I had been enrolled in that program in XXXX of XXXX, and until that moment had not realized that I had ever even actually been enrolled in that plan. If anyone had told me, it was not something I understood. I took a closer look at my loan history and saw that I had in fact suffered capitalized interest on XX/XX/XXXX, after the phone conversation with the Navient rep. 

Navient had put me in the graduated plan, but for some reason, the FAFSA website was telling me I missed the XXXX deadline to update my information for the repayment plan. I was furious. Some of this is my fault for allowing my ignorance to encourage me to procrastinate and deny that I needed to get a handle on this part of my life ; but I was in shock that Navient, and even worse, the government would allow these horrible business practices. 

I started going over my loans with a fine-tooth comb and found more than one issue that I felt needed to be addressed. Besides the issues I saw with past instances I was concerned that I had not yet received confirmation of my approval for the IDR repayment plan I applied for almost a month before. So, on XX/XX/XXXX, at XXXX XXXX  PST, I called Navient and spoke with Navient employee # XXXX, who told me that I should address my disputes in an email and send it through the Navient website. 

I sent an email through the website portal, which is the only way to communicate online. It is important to note here that I do not receive a record of the documents that I send to Navient, and the docs they send are only available for 8 to 12 months. I have kept my own record of correspondence but given there is a sent folder that is supposed to store my messages to them, that never reveals my communication, it is more than discouraging, it is shady. One time I even asked for a copy of the correspondence I sent them, and they refused to send them to me, I have a record of that communication as well.

My application for the REPAYE plan was approved on XX/XX/XXXX, the same day as my phone call. Which makes me think that they wouldve just continued to ignore it until I mentioned it. My IDR plan would start on XX/XX/XXXX, in the amount of {$55.00}. 

In the many issues I have with Navient, there was one regarding the failure to note payments made on XX/XX/XXXX and XX/XX/XXXX, as they were shown paid out of my checking account but not reflected in my account payment history. I did see that there were refunds issues close to those amounts and dates. I have a number that identifies this issue. 

The reply I received to this issue was astonishing. I was told that Navient is required to apply the payment to the principal balance that was disbursed in the last 120 days if certain conditions were not met, ( then they list the conditions. ).

The problem with this excuse is that I made a number of payments within 120 days of disbursements, while in school, yet this was the only time that they followed through on this requirement. Its like they pick and choose whatever they want to do whenever they want to do it. It isnt right, its confusing, and they are being careless with peoples lives. Further, they give minimum effort and do the very least possible when correcting the huge mistakes, they made. 

On XX/XX/XXXX I wrote Navient about this issue in careful detail, and on XX/XX/XXXX, I called Navient at XXXX XXXX, in response to a voicemail, that said I should contact, a specific person, at a specific extension, to address my many concerns. The voicemail was left at XXXX XXXX, earlier that same day. When I called, I got a recording that said to leave my name and number, and someone would call the next day. 

On XX/XX/XXXX, after I had not received a callback, I called at XXXX, XXXX, and one more time a few minutes later, always greeted with the aforementioned recording. 

Frustrated with not only the past payment issue, but also with the fact that I now have received my bill due in XXXX, XXXX, and XXXX, and the amounts due were not the {$55.00}, that the REPAYE acceptance letter had promised, rather almost double. The amounts due on the printable account information from the website, didn't match the amounts requested in emails from Navient and both were more than the {$55.00}. 

I called the regular number for Navient and talked to XXXX. His first comment was, your account is all over the place, not super-encouraging from a financial institution that holds my loan. He put me on hold for a bit and came back to tell me that a regular agent, such as himself, could not help me. That my issues had been escalated to an XXXX case agent, he didnt know what XXXX meant, unlike the regular line that was open later, this special department closed at XXXX  XXXX. 

On XX/XX/XXXX, XXXX, the same agent that I had been trying to reach, called at XXXX XXXX, I was busy and said I would call her back at the number she gave me. When I called the number at XXXX XXXX, I kept getting a recording that said the number I was calling was not a valid extension. I tried 6 times. I finally waited for the next available agent. 

I finally got a hold of the right person. I brought up my issues. She offered to go back and apply all my payments as refunds, after telling me there was no chance that I would be worse off for having her take this action. She assured me it could only be better. I told her to do it, ONLY if there were no consequences. It was clear that I wanted no more surprises or shady dealings. Additionally, when I mentioned the conflicted payments amounts from printable account information, emails, and the {$55.00}. She was surprised and wanted to know when I received the {$55.00} quote. She had also included student loans that I had paid off from XXXX in the totals she was quoting me over the phone. It was clear my loans were being carelessly managed. 

During the same phone call, I requested specific information to be mailed, including subsidy information and asked for a follow-up phone call. I received neither. After she applied all my payments made while in school as refunds, the capitalized interest from coming out grace increased by {$100.00}. Her promise that I would not be paying interest was not true, and I paid as much if not more interest due to the change. 

I dont see where I was really benefited, and it may have made it worse. Moreover, the numbers in my payment history are allocated a bit differently. I don't see that my fees were refunded, and because they backdated my payments to the date when the money was disbursed, the interest that accrues daily is sky high when the first payment not processed as a refund is received, so my whole payment gets put toward interest. 

After realizing that no matter what, Navient will abuse me, I have spent so much time making sure that I don't get taken advantage of. Altogether, I have spent hours, weeks, months, trying to figure out how to get ahead of this. It has taken me over 3 hours just to sit down and draft this letter. It is astonishing that these practices are allowed in a civilized society. I have given Navient the benefit of the doubt and every time I think this time will be ok, it is not. 

In this complaint process you asked which of the following choices best explains my issue. I wish I was able to choose multiple answers. In addition to what I have included so far, a recent review of my credit report shows incorrect information from Navient. I am not even going to bother notifying them, because I have wasted enough of my time trying to get them to do the right thing. 

I know this is lengthy, I tried to keep it to the point. Please contact me for any clarification.

Company response to consumer: Closed with explanation