Consumer complaint received 2024-10-29
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (CO)

Demand for Loan Payout, Justice, and Compensation for Predatory Lending Practices To Whom It May Concern, I am writing to formally demand compensation and relief for the severe financial and emotional hardships I have experienced due to the predatory lending practices of XXXX XXXX, later taken over by Navient. My situation aligns with the XXXX XXXX XXXX XXXX findings against Navient, and I seek justice and remedy for the harm caused by their actions. 

As an XXXX from a low-income background with limited credit history, I took out private student loans with XXXX XXXX in XXXX, later managed by Navient, to finance my education XXXX XXXX XXXX. Despite consistent payments over 15 years, my total debt has increased by 51.87 %, with my current outstanding balance now totaling {$100000.00}. 

This figure is the result of unsustainable interest rates, compounding debt, and mismanagement of my loans. Below is pertinent information regarding my loans and my experience with Navients lending practices : Loan Origination Dates : XXXX through XXXX Initial Loan Amounts and Current Balances : Loan # XXXX : XX/XX/XXXX, originally {$2600.00}, current balance {$2700.00} ( XXXX % reduction over 16 years ). 
Loan # XXXX : XX/XX/XXXX, originally {$8200.00}, current balance {$8300.00} ( XXXX % reduction over 14 years, 8 months ). 
Loan # XXXX : XX/XX/XXXX, originally {$8200.00}, current balance {$8500.00} ( XXXX % reduction over 15 years, 1 month ). 
Loan # XXXX : XX/XX/XXXX, originally {$16000.00}, current balance {$23000.00} ( XXXX % reduction over 16 years, 1 month ). 
Loan # XXXX : XX/XX/XXXX, originally {$14000.00}, current balance {$26000.00} ( XXXX % reduction over 18 years, 1 month ). 
Loan # XXXX : XX/XX/XXXX, originally {$22000.00}, current balance {$38000.00} ( XXXX % reduction over 16 years, 11 months ). 

Employment Information : I have dedicated 14 years to working in the nonprofit sector, fulfilling all requirements for XXXX XXXX XXXX XXXX ( PSLF ). However, XXXX high-interest private loans have unjustly excluded me from XXXX, XXXX me in a cycle of unmanageable debt and preventing me from receiving the forgiveness I deserve. 

Financial and Emotional Hardship : XXXX XXXX of my loans has resulted in severe financial and emotional consequences, including : Misleading Repayment Options : Navient frequently steered me toward temporary solutions, such as forbearance, which drove up interest without offering sustainable, long-term relief. 

Misallocation of Payments : My payments were often misallocated, leading to unnecessary fees, negative credit reporting, and additional interest. 

Credit Damage : XXXX inaccurate reporting and payment mismanagement have left me unable to secure housing, auto loans, or a mortgage, impacting my employability and causing significant emotional distress. 

XXXX XXXX : My cosigners, misled about their obligations, have also experienced financial strain and emotional distress due to XXXX practices. I request their immediate release from these obligations to relieve them of undue hardship. 

Denial of XXXX XXXX : Despite fulfilling PSLF requirements, I was excluded from the program due to XXXX high-interest private loans. This exclusion has caused unnecessary stress and long-term financial harm. 

Requested Documentation : I am prepared to provide additional documentation upon request, including proof of nonprofit employment, credit denial letters, and records of payment misallocation. 

Demands for Justice and Compensation : Given the documented impact of Navients practices, I respectfully demand the following : Loan Discharge : Immediate cancellation of my loan balance due to the predatory terms and unfair loan management. 
Compensation for XXXX and XXXX XXXX : Compensation for the financial hardship, mental health issues, and lost opportunities resulting from XXXX actions. 
Removal of Negative Credit Marks : Elimination of Navient-related negative marks on my credit report. 
Protection for Cosigners : Full release of my cosigners from any obligations tied to these loans. 

The harm XXXX practices have caused extends beyond financial strain, impacting my emotional well-being and quality of life. I urge you to acknowledge my experiences and provide swift relief to rectify the damage done. 

Thank you for your time and attention to this matter. I look forward to your prompt response.