Consumer complaint received 2016-08-24
Company: Navient Solutions, LLC.
State: PR
Product: Student loan
Sub-product: Non-federal student loan
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint:
All my student loans ( private and federal ) went into repayment status at the XXXX. I had financial issues ( due to being a widow ) shortly after the loans went into repayment status. I made a payment on XXXX, XXXX to bring them current, then was not able to make payments on XXXX, XXXX and XXXX. In XXXX XXXX I made a payment that covered all the past due payments on all of my student loans, both private and federal. I continued to make monthly payments after that until around XXXX XXXX, a month after I started back in school. I sent information to all lenders about my school enrollment and when I received a bill that XXXX from Navient stating I still had a payment due I called and requested an in-school deferment. They sent me to their website to print the form and told me that it may take a month or so for it to be processed at which time everything would be reset to current. It was n't until XXXX, when I received yet another " past due '' bill that I was told that my private loans had been charged-off in XXXX and I did not qualify for deferment. I explained that I had not received any notices and that I had been submitting my payments online ( as always ) and all my loans showed " current ''. I then made a complaint with the XXXX about the situation and proceeded to submit a payment to cover XXXX thru XXXX of XXXX for those XXXX loans. I received a letter from Navient answering the XXXX complaint, explaining that my loans were current ( and I was being charged regular re-payment status interest ) because I was making monthly payments but that they were still charged off. I called them to explain that the letter did not make sense, as an account ca n't be current and charged-off at the same time. I have since made monthly payments online on the private loans, even though all my federal student loans qualified and were put on the income-repayment program after I graduated in XXXX XXXX as I am currently unemployed but searching for a job. Last week I received a phone call from a Debt Collection agency in New Jersey stating that my Navient account was charged-off in XXXX XXXX and sold to them the same month. I explained the whole situation to the representative and even showed him proof of my monthly payments that I do online on the own Navient website and how my loans show " current '' with an amount due on the XXXX every month and an updated balance. He was very understanding and even told me that he did not understand what was going on and that my account should not even be with them and should not be still reported charged-off like I was not paying it, when I have been making monthly payments ever since it went into repayment status and they informed me I would not qualify for any deferments on the private loans. I feel like I am being penalized for something I am not doing and that Navient is benefitting from both reporting a charged-off account on their books but telling me my loans are " current '' and charging me interest and repayment as if they were not reporting it as charged-off to the credit bureaus. How can my loan be current and charged-off at the same time? I believe there is something un-ethical if not illegal going on with my account and I can only wonder if this is " normal practice '' for them.

Company response to consumer: Closed with explanation