Consumer complaint received 2023-02-25
Company: Navient Solutions, LLC.
State: UT
Product: Debt collection
Sub-product: Federal student loan debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
XX/XX/22 I get a letter from the XXXX saying that the time frame to work off the scholarship has expired .... 

XX/XX/22 BY LETTER I challenged that assumption with the fact that the place where I was volunteering was shut down because of XXXX, and I disputed the validity of the debt ..... 

XX/XX/22 BY LETTER I requested a hearing, an audit, and an investigation by the DOE Inspector General ..... 

XX/XX/22 I contacted the VA by phone and they said its undisputable that this debt was cancelled/paid by Government Veterans programs .... 

XX/XX/22 BY LETTER I contacted the Treasury Department that had been charged with collecting this fraudulent debt and sent them info about the the fact that all of my student loans were to be XXXX when the VA and the federal government said I was XXXX XXXX XXXX 
The XXXX people said that the scholarship / work requirement turned loan, did not fit that government mandate of being paid off due to XXXX, and the school system / financial aid placed it with another government agency for collection. I pointed out to that agency that I had not been given my hearing even though I had requested XXXX in writing as directed by the XXXX XXXX CRD Dispute Form and that I did not owe this money in any way shape or form. 

The government agency that was collecting this outstanding debt that they had been told by the XXXX that I owed, discovered I was right and returned the debt back to the XXXX. At that time the debt was a little over {$7700.00}, based on the cost per class divided by the 36 month work requirement. 

Now the debt has been sent to Pioneer Credit Recovery. It is still uncollectible, and as a private firm, now you are engaging in fraud and this problem continues. I don't know who decide {$2300.00} of administrative cost plus {$140.00} of penalties and a credited pay amount of {$310.00} which I was told would be offset against my Social Security. Fine way to treat a war veteran isnt it So whoever at pioneer credit recovery is responsible for reference number XXXX for this supposed Department of Education debt XXXX, once again I have demanded a hearing per my rights and I have demanded an accounting of all loans like mine that were discharged because of COVID. I have also asked the proper oversight people, including OPM, And I have contacted my congressman both Senate and house, to look into the matter.

Why the Department of Education agreed with the veterans administration and discharged over {$40000.00} in student loans, as required with the understanding that XXXX XXXX XXXX creates a special circumstance. Why this small section of the Department of Education insists that there scholarship turned loan does not come under that provision, no one can answer. Or no one is willing to answer. This is why the first group that tried to collect the loan is no longer attempting to collect it. They discovered its fraud, and that there are too many errors and what the small section of the Department of Education is doing in this matter. I have contacted the Inspector General of the Department of Education in an effort to get to the bottom of this abuse of power and deliberate misinterpretation and misapplication of the law current

Company response to consumer: Closed with explanation