Consumer complaint received 2024-09-14
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Navient Solutions, LLC. (NY)

On XX/XX/XXXX I emailed Navient to request a School Misconduct Discharge application for a Signature Student private loan that was dispersed to my school XX/XX/XXXX. 

On XX/XX/XXXX I received an email response from Navient 's Office of the Customer Advocate stating my loan is not eligible for its School Misconduct discharge program because the school that certified my loan was a nonprofit institution. 

On XX/XX/XXXX I responded to Navient 's email asking : ( 1 ) why nonprofit schools are not eligible for its School Misconduct Discharge ; and ( 2 ) if it was true that Navient 's application was changed in XX/XX/XXXX to stipulate nonprofit schools are ( now ) ineligible. 

Prior to XX/XX/XXXX, Navient did not stipulate that eligibility for the School Misconduct Discharge was only applicable to loans dispersed to for-profit schools. Navient changed its School Misconduct application XX/XX/XXXX, confirmed by Project on Predatory Student Lending ( PPSL ). This change in criteria is both recent and significant, and was not a consideration when my loan was initially certified. 

On XX/XX/XXXX a notice was uploaded to my inbox on Navient 's internet platform, signed by XXXX XXXX with the Office of the Customer Advocate. It stated the denial was solely based on the claim that the Holder Rule it employs only applies to private loans distributed to for-profit schools. My question : why were nonprofit schools eligible prior to XX/XX/XXXX? Navient failed to answer or address this question. 

DETAILS OF SCHOOL MISCONDUCT : 1. Misrepresentations and Misleading Information : My school made several misrepresentations regarding its education quality, graduate designation, graduate employability, and program offerings. 
My school mislead me, and possibly others, about the availability of federal student loans. 

2. Financial Aid Information : In XXXX the Financial Aid Department at my school informed me I had reached the aggregate limit for federal loans, which was false. 
My school failed to inform me about the availability of the Grad PLUS Loan, which I was eligible for. Instead, my school only offered to certify the Signature Student Loan through Navient ( then Sallie Mae ). 

I question the relationship between Navient and my school, regardless of its nonprofit status, based on information like : Navient allegedly made loans as an inducement to get schools to use Navient as a preferred lender for highly-profitable... private loans, without regard for borrowers and their families, many of whom were unknowingly ensnared in debts they could never repay. ( XXXX XXXX XXXXXXXX ) And : " ... an investigation into student lending practices found that lenders paid kickbacks to colleges and their employees for steering business their way ... '' ( XXXX XXXX XXXXXXXX ) FINANCIAL HARDSHIP : My school certified the Signature Student Loan for {$24000.00} . To date, I have paid {$27000.00} towards this loan, yet the current balance is {$37000.00}. 
My monthly payments of {$520.00} cover only interest, and I am unable to afford higher payments. 
My debt-to-earnings ratio is 865 %, and I have no other debt aside from student loans.