Consumer complaint received 2017-03-20
Company: Navient Solutions, LLC.
State: TN
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Received bad information about my loan

Complaint:
Today I called Navient to discuss a new payment because my forbearance is ending in a couple months. I am currently enrolled in an extended graduated plan which I understood to be an IBR plan - I thought all plans besides the normal payment amount were IBR. I asked the representative why interest was capitalized in XX/XX/2015 because interest should not be capitalized ( or accrued or something ) during IBR, unless you get off of IBR. She told me that because I left IBR and got onto the extended graduated plan, that the interest was capitalized. The change from IBR to extended graduated was made over the phone in XX/XX/2015 with Navient. I have no recollection of being told I was leaving IBR, and I most certainly have no recollection of being told that interest would now be capitalized. 

I am really upset that I do n't get a clear answer from Navient on what exactly will happen to my loan and balance until after everything is said and done, until all of the interest is tacked on to my loan. I thought I was making a good financial decision to go onto the extended graduated plan and only now I fully understand that was a bad financial decision. 

STUDENT LOAN REPAYMENT PLAN DISCLOSURES MUST BE IMPROVED : I am a very educated person and even I ca n't seem to make fully-informed decisions on my student loans because the repayment plans and rules are so complicated. These 'repayment ' plans are not designed for repayment ; they are designed to keep the borrower paying interest/fees every month to stay out of default ( to keep their credit score/history from being hurt ). Repayment means the borrower will have a fair/good chance at repaying the principal of the loan. Loan sharking is giving the borrower little to no chance of repayment while still keeping the borrower paying something to the shark. 

For full disclosure, I became extremely angry and cussed out the representative ; I am sorry for that but it does n't change the inadequacy of the disclosure of changes to my loan terms and capitalized interest. 

The phone call in XX/XX/2015 that I made that ultimately lead to me ( I only understand now ) to get off IBR and onto extended graduated payment plan was not enough information, enough disclosure to make this change. More clear written information about the consequences of these loan changes/choices must be implemented so borrowers do n't make the same decision I did that lead to more than {$12000.00} of interest being capitalized on my loan. THE EXACT COST - OVER {$12000.00} - OF MOVING FROM IBR TO EXTENDED GRADUATED SHOULD HAVE BEEN DISCLOSED TO ME DURING THAT PHONE CALL AND IT WAS N'T. 

What are my options now? I will never be able to repay my loans. I want someone to call me to discuss going into default on my loans. Nearly 4 years after gradudation my loan balance is over {$25000.00} more that it was when I graduated. I will never be able to repay this.

Company response to consumer: Closed with explanation