Consumer complaint received 2024-07-25
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Bankruptcy
Company: Navient Solutions, LLC. (IN)

Navient is attempting to illegally collect on a student loan XXXX by bankruptcy. Navients response to a previous complaint states that the loan was a qualified education loan. This position is incorrect as referenced in Bulletin XXXX : Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts, where the CFPB explains XXXX Second, Fifth, and Tenth Circuits have held that the educational benefit exclusion does not apply to student loans. ( XXXX, XXXX XXXX at XXXX ; XXXX, XXXX XXXX at XXXX ; XXXX, XXXX XXXX XXXX XXXX. ) The CFPB also states that this type of loan was not exempt from general order of discharge because it was a loan made in excess of the cost of attendance ( see attached statements ). The CFPB states that the practice of attempting to collect on a loan such as this constitutes a violation of federal consumer financial law. Navient is even in breach of the Navient XXXX XXXX XXXX where Navient is to refrain from informing private loan borrowers that their loans are non-dischargeable in bankruptcy. Several agents told me private loans were non-dischargeable in bankruptcy. This loan was not made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution. The loan is not a qualified education loan per IRS code XXXX ( d ) ( XXXX ) as it was higher than the cost of attendance, paid directly to me by check, and was not used solely to pay qualified higher education expenses as my first year was paid for by scholarships, grants, and federal student loans. I have included statements from XXXX that prove this fact as no money from the loan was paid to XXXX at any time. Any private loans in these categories ( loan in excess of cost of attendance as this one was ) are XXXX by standard bankruptcy discharge orders, just like most other unsecured consumer debts. ( See, e.g., XXXX, XXXX XXXX at XXXX ; XXXX XXXX XXXX XXXX at XXXX ; XXXX, XXXX XXXX at XXXX ) The CFPB examiners discovered XXXX student loan servicers engaged in unfair acts or practices, a violation of the Dodd-Frank Act, when they resumed collection of debts that were XXXX by bankruptcy courts. The conduct caused or was likely to cause substantial injury to consumers because the representations made to consumers in billing statements and other collection attempts were likely to result in consumers making payments they did not owe. Navient is attempting to do this to me now even as I have repeatedly told them that this loan was XXXX because it was not a qualified education loan and is treated as any other consumer debt. In addition to this complaint, I have recently written letters to CFPB XXXX XXXX XXXX, CFPB Private Education Loan Ombudsman XXXX XXXX, and Congressman XXXX XXXX to alert them to Navients activity. I wish for this to be resolved before Navient transfers this loan to XXXX, a servicer who is known to mishandle loans. Attached are the statements from XXXX, the bulletin from the CFPB, and my bankruptcy discharge order.