Consumer complaint received 2017-07-27
Company: Navient Solutions, LLC.
State: OH
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I have called Navient on 3 separate occasions to discuss my payments on my account and have yet to receive an answer. They replied with one letter after the first call that was generic ; that did not answer my specific question. the second and third calls did not provided resolution or result in the letters that they promised. I believe that Navient is not processing my payments correctly as my whole payment amount continues to be applied toward interest only. Interest should not be outstanding on the account as I have used several forbearance periods. It is my understanding that the interest that accrues during a forbearance period AND that interest should be capitalized at the end of the forbearance AND added to the principle of the loan before repayment starts again on eligible loans -- my loans are eligible for this. In XX/XX/XXXX, I consolidated all of my loans ( XXXX ). I made the next payment of {$250.00} XX/XX/XXXX( which went all toward interest ), then entering into a forbearance period on the loan. In XX/XX/XXXX, I can see " capitalized interest '' was added to the loan in the amount of {$1200.00}. XX/XX/XXXX - XX/XX/XXXX I can see that I made monthly payments of {$250.00}, which were all applied to interest only. On XXXX XXXX, XXXX, {$490.00} capitalized in interest was applied. On XX/XX/XXXX there was a payment of {$250.00} of which {$240.00} went toward principle and {$8.00} went toward interest. -- - showing at this point I did not have outstanding interest as the principle was paid down. On XX/XX/XXXX there was a payment of XXXX that applied {$330.00} toward principle and {$260.00} toward interest -- again showing that there was no outstanding interest as the payment was applied to both principle and interest. Again, I entered into forbearance. The following entries are listed on the account, XX/XX/XXXX Capitalized Interest of {$0.00} and on XX/XX/XXXX Capitalized Interest {$2400.00}. -- - appears that my interest was not entirely capitalized correctly. On XX/XX/XXXX a Payment of XXXX was made on the account of which {$320.00} went toward principle and {$260.00} went toward interest. -- - again showing there should be no outstanding interest as my payment went toward P & I. Again I entered forbearance. There is a spot on the account at the end of this forbearance ( XX/XX/XXXX ) that lists " Capitalized Interest ''. However, again the amount of interest that capitalized is listed as {$0.00}. As far as I am aware, each time at the end of the forbearance, the interest should have capitalized and been added toward the principle of the loan. This appears to be the case up until this date in the process, as the above payments I mentioned are going toward both principle and interest. As far as what Navient has explained over the phone, any outstanding interest must be paid first. So up until this point in the process, it appears that there is no outstanding interest in the account as the 3 payments mentioned above were going toward both ( P & I ). On XX/XX/XXXX ( at the end of the forbearance ) a payment of XXXX went toward interest only. As well as the payment made on XX/XX/XXXX of XXXX also going toward interest only. Again a forbearance was requested. With a payment being made on XX/XX/XXXX of XXXX going toward interest only. The capitalizing interest was listed as being applied on XX/XX/XXXX, however, again {$0.00} capitalized, so nothing was added to the principle. I have continued to make on time, all payments mentioned above were on time, payments of {$370.00} from XX/XX/XXXX through XX/XX/XXXX. These 6 payments were ONLY applied to INTEREST, when they clearly should have been applied to the principle also. Continuing XX/XX/XXXX through to XX/XX/XXXX I continued to make on time payments of {$430.00}. These 6 payments were ONLY applied to interest. These payments should have also been going toward interest and principle. I am on an IDR plan. However, I have confirmation from the lender that my interest every month is around {$250.00} - {$280.00}. The amounts I have been paying have always been MORE than the interest I am accruing every month, so there should be no reason that I am continually paying interest on this loan.

Company response to consumer: Closed with explanation