Consumer complaint received 2021-04-15
Company: Navient Solutions, LLC.
State: TX
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:
To Whom It May Concern, I hope this email finds you well as I would like to address a most difficult time I am having with Navient-repeatedly. 


Public release statements from President, Department of Education  and XXXX XXXX XXXX  state addressing student loans : student loan payment pause, auto forbearance, no interest and no late fees. ( see attached ) XXXX Trump suspends student loan payments through XX/XX/XXXXXXXX XXXX XXXX XXXX? XXXX XXXX Original coronavirus relief bill, known as the CARES Act and signed into law on XX/XX/XXXX, helped most federal student loan borrowers by temporarily pausing payments ... executive action will automatically continue the pause on federal student loan payment XXXX XXXX XXXXXXXX : XXXX XXXX US government automatically suspended payments and waived interest on federal student loans through XXXX. Trump later moved the expiration date to the end of the year by executive order. 
The suspension and interest waiver applied only to federally held loans, which covered roughly 85 % of federal student loans. That included loans known as Direct federal loans, as well as PLUS loans that parents may have taken out on behalf of their children. 

XXXX XXXX XXXX XXXX XXXX XXXX extends student loan payment pause for 42 million borrowers amid covid crisis ... Federal student loan borrowers dont need to resume making their monthly payments until XX/XX/XXXX. 

XXXX XXXX XXXXXXXX XXXX Biden extends student loan payment deferrals until XXXXXXXX XXXX XXXX XXXXXXXX XXXX Since XXXX, all federal student loan payments have been suspended as part of the federal government Covid 19 response XXXX XXXX XXXXXXXX/ Even with numerous public statements, Navient continued to charge late fees XXXX interest and blatantly disregarded my request for a forbearance. Yet, Navient took it upon themselves to capriciously auto forbearance when Texas experienced power outage?! Then arbitrarily released it when they deemed fitting. 

In fact, Navient in an email XXXX wrote We previously granted a national emergency forbearance on your Federal student loans due to the Coronavirus pandemic. Your forbearance has expired and your account is now past due. 

That is most interesting as I never inquired about a Covid forbearance during this time, I was making monthly payments. After watching the aforementioned public releases, I contact Navient. To date, Navient has demonstrated cavalier, what feels like capricious servicing in deciding when a forbearance is issued and when it is retracted. In fact, they dont recognize my written request. 

XXXX Asking why student loans are being charged interest and late fees after the President and Depart of Education froze student loans per numerous public release statements. ( attached ) Navient responds back alleging unable to discuss specific information via email. Were able to assist you via phone, just call XXXX ( see attached ) XXXX Navient sent an email claiming you may qualify to reduce or postpone federal student loan payments I responded will Navient be recognizing and adhering to the federal student loan payment freeze including interest? ( see attached ) As a result of Navient not freezing student loan payment, interest and late fee occurring, I emailed Department of Education and requested clarity. 

On XXXX The Department of Education responded via email stating All federal student loans are automatically being placed in an administrative forbearance that allows you to stop making your payments from XX/XX/XXXX through XXXX XXXX. The interest rate for Federal Direct Loans has been temporarily set to 0 % starting XX/XX/XXXX through XXXX XXXX ( see attached ) This email was forwarded to Navient. 

A second email from StudentAid.gov specifically states All federal student loans are automatically being placed in an administrative forbearance that allows you to stop making your payments from XX/XX/XXXX through XX/XX/XXXX. 
The interest rate for Federal Direct Loans has been temporarily set to 0 %, starting XX/XX/XXXX, through XX/XX/XXXX. Federal Family Education Loans ( FFEL ) and XXXX XXXX owned by the Department of Education ( ED ) are also included. 
Defaulted loans owned by ED will not accrue interest from XX/XX/XXXX, through XX/XX/XXXX. 
That includes Direct Loans and FFEL Program loans owned by ED. 
By XXXX Navient sent an email stating we havent received a payment from you. 

In response, XXXX, I sent another email to XXXX XXXX ( XXXX ) and XXXXXXXX XXXX XXXX restating the email from XXXX. Requesting forbearance and interest adjusted according to recent public releases. ( Recall from above the student loans are supposed to be on auto forbearance stated publicly by President, Dept of Education and also XXXX XXXXXXXX XXXX, all of which was provided to Navient ; yet, my loans are accruing interest and late fees. ) After no response from Navient, XXXX XXXX ( XXXX ), XXXX XXXX ( XXXX ) and XXXX XXXXXXXX XXXX were again sent the email directly from Department of Education pertaining to student loan payments, interest and late fees. Requesting forbearance on the account, in alignment with the email from Department of Education. 

You can imagine my surprise, on XXXX to get an invoice from Navient requesting a payment for {$350.00}. That is quite a distance from the standard {$85.00} per month. On the same day, XXXX XXXX with Navient sends an email claiming you may qualify to reduce or postpone your federal student loan payments. In response, I forward to Ms. XXXX the email from Department of Education regarding student loans, interest and late fees. In the email I mention my 3rd request for a forbearance, that up to this point, is still not on the account. 

Navient replied on XXXX claiming were unable to discuss specific account information via email and requested I call. 

Come XXXX Navient arbitrarily and capricious placed my student loan on forbearance due to natural disaster in Texas. 

By this point of waiting hours on the phone to speak to someone with Navient, which is not realistic for anyones schedule. I sent an email to XXXX. Identified in great detail the inability for Navient to answer a few basic questions regarding the Presidents executive order, Department of Education public release statements and XXXX XXXXXXXX XXXX reports. My email included the many sources for reference, requesting interest be adjusted on my account to align with the public policy. In addition, I also supplied the advocate a historical record of where interest and late fees were being charged, which did not align with current public policy, collaborated by the email from Dept. of Education. And the most recent statement showing payment increased from {$85.00} to {$350.00} per month. Another written request for a forbearance was included in the email. 

Office of Customer Advocate, XXXX XXXX. Mrs. XXXX ( XXXX ) replied in an email claiming ONLY Department of Education loans are eligible for relief. She proceeds to claim my student loans are not eligible for interest waiver or automatic payment suspensions. Dept. of Education clearly states All federal student loans are automatically being placed in an administrative forbearance that allows you to stop making your payments from XX/XX/XXXX through XX/XX/XXXX. The interest rate for Federal Direct Loans has been temporarily set to 0 %, starting XX/XX/XXXX, through XX/XX/XXXX. Federal Family Education Loans ( FFEL ) and Perkins Loans owned by the Department of Education ( ED ) are also included. Defaulted loans owned by ED will not accrue interest from XX/XX/XXXX, through XX/XX/XXXX, XXXX.That includes Direct Loans and FFEL Program loans owned by ED. 
She continues to claim forbearance is available for borrowers who request it. I have requested in writing numerous times ; and yet, never received it. 

Within a day of bringing the inflated payment schedule change to Ms. XXXX attention, the following day XXXX I received an email reflecting the expected {$85.00} payment due. 

Up to this point, I have requested a forbearance 3x in writing and have not received it. 

Mrs. XXXX continues on to admit a natural disaster forbearance was applied to loans from Texas on XXXX, citing the next payment is due XXXX. 

Ms. XXXX prefers to send emails where they are encrypted. Due to the method in which she sends the emails, they require a computer to open them. The password protected document may not be able to be opened on any mobile device such as a phone or tablet. We suggest that you open the document with either a laptop or desktop computer. If one is not near or have available either a laptop or desktop the customer can not open the email. 

XXXX I responded to Mr. XXXX ( XXXX ) citing the reason I contacted the Department of Education to clarify for interpretation the Department of Education official stance on student loan repayments and who they did and did not cover. In fact, Department of Education email states all student loans. Inquired about the repeated forbearance, that has yet to be applied nor request acknowledged. Requested a forbearance. 

After emailing Navient the email directly from Department of Education stating all student loans, Ms. XXXX notifies me they now need to research the account. ( Recall a while back, Navient, was given the email from Department of Education a few times along with multiple URLs regarding Presidential executive orders ) To add to frustration, Navient continued to address me by the incorrect gender, after correcting them more than once.

Student Loan repayments are difficult enough given the mandated lockdowns, people losing their jobs, depleting savings and trying to stay afloat. When public officials who regulate students loans from the President a
nd Dept. of Education issue a written statement about student loans, is the servicer in a position to interpret what that means? 

So, a student loan servicer can issue a forbearance at their whim ; but disregard a customers request to get one?

A payment jumps from {$85.00} to over {$350.00} in one month with little to no explanation? Yet, when it is brought to Navients attention, within days it is corrected? What if the customer had not caught it and auto paid it?

Additional concerns : 1. The balance on Studentaid.gov is different than Navient is reporting. 2. StudentAid.gov shows a forbearance status ; yet Navient site does not report a forbearance status. 
3. Studentaid.gov cite is not showing the late fees and interest as Navient site is assessing 4. The student loans FFELP are specifically mentioned in Department of Education email surrounding : 0 %, late fees and forbearance. 

These are some of the reasons, I feel like I am reading a similar story when I read the article below. It is also a reason why I know someone needs to open an inquiry into the internal operations and applying the directives of government entities. 

After reading this article, XXXX XXXX XXXXXXXX it feels very similar to what I am experiencing and what I am hearing.

Company response to consumer: Closed with explanation