Consumer complaint received 2023-07-03
Company: Navient Solutions, LLC.
State: OH
Product: Student loan
Sub-product: Private student loan
Issue: Getting a loan
Sub-issue: Fraudulent loan

Complaint:
My name is XXXX XXXX, and I am writing to you today to file a complaint against Navient. I called Navient on XXXXXXXX XXXX XXXX The purpose of my call was to notify Navient that I am invoking a defense to repayment of the loans because the school I attended, XXXX, defrauded me and for this reason I will no longer be making payments on my private student loans. 

The response I received from the Navient Customer Service representative was that she understood ( what was I saying ) and that they have been receiving a lot of calls surrounding XXXX. 
She explained, if anyone that is working on the private loans can prove that they are fraudulent have them contact us. 

I then sent a written summary of this call and asked for more information about what the representative said to the general Navient email account as well as to the Navient office of the Customer Advocate. 

I received an email response on XX/XX/, from XXXX, a Loan Servicing Specialist ( I have attached a copy ). In her email, XXXX only said that Borrower Defense Relief is a program offered by the U.S. Department of Education that allows borrowers to apply for loan forgiveness for their Federal Direct Loans. Please note that the provisions of Borrower Defense Relief doesnt apply to private credit loans. Your loans ending in XXXX and XXXX are private credit loans, which does not qualify for loan forgiveness programs. 

On XX/XX/2023, I received a communication from XXXX XXXX from the Office of the Customer Advocate ( I have attached a copy ). In the communication, XXXX said that theres no discharge program available at this time for students who claim a defense to repay a private loan due to misinformation or the quality of education they received at their school. Were not able to respond to any information or guidance provided by a customers school, financial aid advisor, or other financial advisor. 

I believe there is a problem with these responses and there should be a process for providingme with more information and relief. 

Having attended XXXX  has left me with significant debt and a worthless degree, leading among other harms to financial and emotional distress.I was told by the school that it would be funded through the VA using my GI Bill and I wouldnt have debt. I would talk with the student counsellors and they would confirm this. I used 100 % of my GI Bill and still there were federal and private loans taken out in my name. I was misled as to cost of everything and how it was being financed. 
The above described activities constitute violations under the applicable state consumer protection laws and constitute common-law claims for breach of contract and negligent misrepresentation. In addition to causing enrollment, these actions also induced reliance to remain at the school. 
In addition, the Department of Education has also found that XXXX defrauded thousands of students. 
https : //www.ed.gov/news/press-releases/education-department-XXXX XXXX

Company response to consumer: Closed with explanation