Consumer complaint received 2017-04-20
Company: Navient Solutions, LLC.
State: NJ
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:
I graduated from  XXXX   XXXX   XXXX  in   XXXX   XXXX   and graduated from   XXXX    at  XXXX   XXXX , NJ, in   XXXX   XXXX  . In   XXXX   XXXX   I explored loan forgiveness with Navient and was informed that I should consolidate my loan with them and another lender, and I would be eligible for loan forgiveness after 120 consecutive on-time payments on the income-driven repayment plan. Myself and my mother, who is authorized by Navient to speak and act on my behalf, had numerous conversations and confirmations before consolidating. We asked to speak with loan experts to be sure we understood the process and were told that all Navient representatives are experts. After consolidating, we paid the amounts that were outlined by Navient, and have now been hit with exorbitant " capitalized interest '' amounts that were never explained to us. Since consolidating about 28 months ago, the capitalized interest is over {$18000.00}. Last year, when we called about un-consolidation, we were told that is not an option, but if we paid more that interest rate would go down. We said we were paid the amount that was given as part of the  income drive  repayment plan and that after 10 years those accruing amounts would be forgiven. We were also advised to pay off the personal loan of about {$20000.00}, since that is not part of loan forgiveness, but yet is the only part of the loan which has decreased since payments started. We were advised by Navient that after  ten  years when loan forgiveness is complete, we would have repaid {$190000.00} of the total loan amount. In  XXXX  of   XXXX   when we saw a capitalized interest amount of almost {$10000.00}, we called Navient to inquire and were told that most likely, next year, I would no longer be eligible for the IBRP or loan forgiveness, and that we can not " unconsolidated '' my loan. Throughout my last 3 years of correspondence with Navient, I have dealt with a wealth of miscommunication and, in my opinion, a ploy to get me to assign all my loans to  Navient  before giving me the actual financial facts. I consider this information to be untrue and fraudulent as the present response to all my questions is that all occurrences with my loan are approved by the federal government and repeatedly quote the formula for calculating payments with interest. My mother has been in touch with her   XXXX   XXXX   XXXX   and they give her the  Consumer Finance Protection Bureau information,  advised us to file a complaint, and gave us several alternative companies to see loans at a lower interest rate and less of a payment per month. My loan went from {$800.00} to {$2300.00} in two years and Navient informed us that it would be significantly higher next year. I was also charged late fees over the course of my loan when I was still in medical school, which Navient has not explained, addressed or removed. We are confused since what we were told pre-consolidation is totally different from what we are experiencing. While we are going to explore better rates and a more reliable and forthcoming institution than Navient, we felt it important to report my situation. Thank you for any assistance or advice you can provide me. I can provide my loan history and details when necessary.     Sincerely,  XXXX   XXXX   XXXX

Company response to consumer: Closed with explanation