Consumer complaint received 2017-03-20
Company: Navient Solutions, LLC.
State: FL
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint:
In XX/XX/XXXX, loan defaulted due to unemployment ; Between XX/XX/XXXX and XX/XX/XXXX, I called XXXX and researched my online account to find that my loan was being serviced by XXXX. Getting answers about a repayment plan and my account balance was not easy. Nothing could be verified with regards to the balance or who was servicing -- I received threatening phone calls. My family and husband received calls threatening to ruin my credit. In XX/XX/XXXX, I received a letter from XXXX on behalf of United Student Aid Funds. At that time, I was employed and XXXX called my employer and sent a letter threatening to garnish XXXX % of my wages. I never received any notices about my loans being serviced by these companies, so I was skeptical on the integrity of these practices. I felt harassed and bullied into signing a rehabilitation application and was advised that this was my only option. The program stated that I can make 9 monthly payments on time at $ XXXX by automatic debit only. Once the loan has been rehabilitated, then consumer reporting agencies will be notified to delete the derogatory credit rating reported. Recently, I checked my credit reports via TransUnion and Equifax. These derogatory statements are still noted. During XX/XX/XXXX, the principal was {$41000.00}, XXXX was {$560.00} and Interest Rate was XXXX %. From XX/XX/XXXX to XX/XX/XXXX, I paid XXXX payments of $ 302 monthly. Where was this money applied to my account? There is nothing in my Navient account supporting these payments during this timeframe. In XX/XX/XXXX, I was contacted by Navient stating they were servicing my loan and we verbally agreed on less than $ XXXX which is {$270.00} per month. They did not tell me the life of the loan was until XX/XX/XXXX. The unpaid principal was now {$46000.00}, unpaid interest {$71.00} with a fixed interest rate of XXXX % ; consolidated. There were not options provided by Navient to prevent these charges and no one could answer my questions about these fees. Every month, my balance was increasing. In XX/XX/XXXX, I called Navient to explain how they estimate the interest and how they decide how the interest is applied. I was told that the interest is accrued daily at {$5.00} per day. My monthly payment is {$270.00}. Every month, only {$92.00} is going toward my principal and {$180.00} goes toward interest. This loan will never get paid off. Also, in my Navient online account, there are XXXX loans listed. XXXX with a {$0.00} balance and another with {$45000.00} balance. I ca n't get any clarity on these confusing practices especially with credit reporting agencies. I sent this exact message to Navient and received a response that they needed additional documentation such as proof of school enrollment, proof of payment, proof of adverse credit reporting. I sent all online on XX/XX/XXXX, received a generic email stating that my deferment was denied and to complete a form. I was asking for clarity on 12 months of payments to XXXX XXXX XXXX, which were not reflecting in my Navient account and reflected as not reported on my credit reports. I need assistance with understanding how my payments are allocated, specifically the XXXX XXXX XXXX, which promised to rehabilitate my loan out of default, remove any adverse comments from my reports and Navient could not explain all of the extra fees. My loan will never get paid off and I am currently a startup company, so my income has decreased dramatically. Please contact me for documentation sent to Navient. They do not seem to be organized and the uploading of documents on their website is n't user friendly. 
Thanks

Company response to consumer: Closed with explanation