Consumer complaint received 2015-10-01
Company: Navient Solutions, LLC.
State: MA
Product: Student loan
Sub-product: Non-federal student loan
Issue: Dealing with my lender or servicer
Sub-issue: Don't agree with fees charged

Complaint:
I have a personal student loan through Navient ( previously XXXX XXXX ). I took out a loan for my XXXX degree at XXXX XXXX University at XXXX XXXX, XXXX. The total original amount of the loan was {$50000.00}. I started making payments after graduation in XX/XX/XXXX and was charged an additional capitalized interest for the amount of {$8800.00} at the time I started repayment. I then went to grad school at XXXX XXXX University in XXXX starting in XXXX and was put in automatic deferment. I tried multiple times to make payments, but that required faxing in a request to go out of deferment. After a few months, I would then be able to make payments, but then starting the next semester I would be put back in automatic deferment until I graduated with a XXXX in XX/XX/XXXX. During this period I was charged an additional {$5900.00} in capitalized interest. Over the course of obtaining a XXXX and XXXX degree, Navient charged me {$14000.00} in capitalized interest. 

To date I have paid {$57000.00} to Navient on my original debt of {$50000.00}. The total amount is over XXXX separate loans with an interest rate of 4 % and less. Based on Navients calculations I have paid {$32000.00} in principle over 11 years and {$25000.00} in interest. Navient has calculated that I still owe {$32000.00} in principle and continues to charge accrued interest of {$100.00} per month. My most recent monthly payment was for {$530.00} and 24 % of that payment is applied to interest. In total I have made 113 monthly payments averaging {$510.00}, which is less than the 132 payments that would have taken place if the automatic deferment system Navient was n't used to charge me additional capitalized interest. I will end up making another 81 payments over the next 6 years to pay off the remaining principle and pay an additional {$10000.00} in interest. That would take my final payment amount on {$50000.00} in student debt to {$100000.00}. That would include payments totaling {$36000.00} in interest, {$14000.00} in capitalized interest, and {$50000.00} in principle. 

As far as the total interest payment amounts, if I was to take a loan at 4 % on the {$50000.00} I should only expect to pay {$10000.00} in total interest over a 10 year term or {$16000.00} on a 15 year term. Again, I have already paid ( according to Navient ) {$25000.00} in interest over 113 payments on an original debt of {$50000.00}. Even including capitalized interest if I had a flat 4 % debt on the {$65000.00} I should only have paid {$20000.00} in interest over 14 years! I have already paid {$25000.00} interest in less than 10 years of payments at loans ranging from 3.5 % to 4 %. My payment average over the 113 payments of {$510.00} should have my original debt paid off at 120 payments with a total interest of {$10000.00}. Including the capitalized interest my debt should be paid off in 166 payments with a total interest of {$19000.00}. 

To summarize, by XX/XX/XXXX I will have paid Navient {$100000.00} over 17 years on an original student debt amount of {$50000.00} with a interest rates on XXXX loans of 4 %, 4 %, 4 %, 3.5 %, 3.75 %, and 3.75 %. I was charged {$14000.00} in capitalized interest and have already paid {$25000.00} in interest according to Navient. In total I have made 113 monthly payments amounting to {$57000.00}. Navient took advantage of my attending XXXX XXXX to put me in deferment to increase the amount of capitalized interest on my loans, making it hard to enact payments on my loans at that time. The continual accrual of interest is not in line with the original loan amount and will end up being double the amount of the original loan amount at the time of scheduled repayment. I feel this lending practice of continual interest payments that inflate the total amount paid is predatory.

Company response to consumer: Closed with explanation