Consumer complaint received 2024-08-05
Product: Student loan — Private student loan
Issue: Getting a loan — High pressure sales tactics or recruiting
Company: Navient Solutions, LLC. (GA)

Thousands of students were scammed by Navient/Sallie Mae into taking out predatory private loans to attend for profit schools such as the one I attended, XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ), operated by the XXXX XXXX XXXX. As a matter of fact, XXXX  was investigated by 49 state attorneys general and were found to be lying about total costs, accreditation, and were also investigated for distorted program costs and job placement rates and giving admission recruiters bonuses for getting more students to sign up. 
I experienced this in XXXX of XXXX when signing up. The recruiter showed me costs, and the breakdown of how long it would take us to pay back the loans, with promises of a ten-year repayments, and a total tuition rate. I was lied to that I would not qualify for federal loan assistance because XXXX was a private school and federal loans do not pay for our programs. I later found out all this was false. The original amount requested for my loan on XX/XX/XXXX was {$48000.00}. This amount was to cover the entirety of my tenure as a student at XXXX, which was from XX/XX/XXXX through XX/XX/XXXX. In XXXX of XXXX, I was pink slipped to take out additional funds to complete my program because the original amount was not enough to cover tuition from XX/XX/XXXX through XX/XX/XXXX, when I was set to XXXX. On XX/XX/XXXX, I was made to request an additional {$26000.00}. I requested my loan documentation in XX/XX/XXXX, and have discovered that many of the items that are required in a promissory note are missing, including interest rates and signatures from the school on both XXXX XXXX XXXX XXXX documents. The original principal amounts on both loans total {$51000.00}, with the first disbursed on XX/XX/XXXX in the amount of {$26000.00}. However, by the time both loans were sent to be refinanced and consolidated, both loan balances were over {$31000.00} each. The total increase in the amount that I was originally told my education would cost is over {$18000.00} higher due to the undisclosed interest rate of 18.125 % ; which was compounding daily while I was in school. It was this incredibly high and criminal interest rate and a monthly payment of over {$1100.00} per month, when I was making {$10.00} as a line cook, forced me to refinance in XXXX. It was this refinance that prompted Navient to respond to my request for a XXXX XXXX XXXX XXXX with a denial. 
In XXXX, when trying to reduce overall program costs for my XXXX XXXX in XXXX I found no credits would transfer as my XXXX XXXXXXXXXXXX XXXX transcripts lists XXXX as Unaccredited. When I originally applied, I was informed that the school was an accredited institution and that if I chose to pursue a higher degree, that the classes were eligible for transfer. 
Because of the numerous claims of fraud and misconduct perpetrated by these for-profit schools, such as XXXX, I was able to file a Borrower Defense claim as a full class member, with the Dept. of Education against XXXX however , the entirety of my loans were XXXXXXXX XXXX XXXXXXXX ( {$67000.00} ), and therefore did not qualify for Borrower Defense resulting in a denial of discharge and/or credit repair. 
I am aware that Navient was sued by 49 state AGs regarding their predatory loans to attend these online for-profit schools and that Sallie Mae/Navient were a " preferred '' lending company in a " deal '' with these schools during the early XXXX 's. These private loans with a high risk of default were part of a package deal offered to " for profit schools ''. But loans made to students in states outside of the agreement, or those who were not in default for 7 months or more during a " specific '' time frame, were excluded. I am sure this was a big win for Navient, but what a sham of a settlement deal for the rest of borrowers scammed into taking loans to at least 150 for profit online schools. After the AG settlement, didn't Navient also get out of the Federal student loan business due to scrutiny from lawmakers and borrower advocates? Didn't Navient have to pay restitution to the Federal student loan borrowers for not informing students of IDR/IBR payments students could have enrolled in, but instead steered toward forbearance? Furthermore, hasn't Navient been sued at least a half dozen times for other predatory loan practices and illegal collection practices?

I am also aware of a " pilot '' program by which Navient is sending out " applications '' to select students who may have filed Borrower Defense claims against their schools and were approved. This application is a sham. Why do we need to prove anything? Navient knows who we are. Under the FTC " Holder Rule '' Navient is liable for giving predatory loans in connection with online for-profit schools. Time is running out for Navient to do right by students who were scammed into taking out private loans to attend online for profit colleges who have committed misconduct and misrepresented themselves to the public to entice students to enroll. XXXX XXXX XXXX has sent a letter to Navient 's CEO asking to discharge these loans NOW! It's time Navient do the right thing and discharge all these predatory private loans made to attend online for profit schools.