Consumer complaint received 2024-07-08
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Problem lowering your monthly payments
Company: Navient Solutions, LLC. (CA)

In XX/XX/2024 I was notified that my federal student loans used to attend XXXX XXXX XXXX XXXX XXXX were being discharged due to the misconduct of the school. I also have private student loans used to attend the same school during the same time period. Those were not being automatically discharged like the federal loans. Instead I found I needed to fill out a complicated application to ATTEMPT to get the private loans discharged. This was already ridiculous as there is no reason for the private loans to remain while the federal loans are discharged. They were used for the same fraudulent school so they should both be discharged.

Specifically, the " Holder Rule '' applies and means that my private loans should be discharged due to the misconduct of the XXXX XXXX. 

But because Navient wants to make things difficult I still had to apply for and fill out an application. 

In a previous complaint I requested that Navient provide me with an application for Student Loan Discharge due to School Misconduct. Their response to that first complaint contained this excerpt : " Thank you for reaching out to the CFPB with your concerns regarding your student loan account. Navient currently services your XXXX XXXX XXXX Student Loans that were disbursed for your attendance at the XXXX XXXX XXXX XXXX. Thank you for inquiring about a school misconduct discharge for your private loans. We are in the early stages of this new process and have determined that your loans meet the criteria for you to receive an application. '' So at this point they admit that my loans are eligible to receive the application. This suggests they believe that my loans are also potentially eligible to be discharged due to school misconduct. Otherwise I don't see why they would even send me the application. 

I spent XXXX weeks gathering evidence and completing the application. I submitted it to Navient and after a month they replied that my application was denied. There was no actual explanation as to why I was denied. 

I submitted another complaint, asking for a clear explanation of why I was denied when the act of denial makes no logical sense in my situation. And I have seen others who attended an XXXX XXXX submit an application and have it approved. There seems to be no rhyme or reason to who Navient chooses to approve or deny. And without clarity from them I can only assume it's essentially random. 

Navient responded to this latest complaint with essentially the same circular logic " explanation '' for my denial. Again, there is XXXX clarity and Navient isn't doing what they are obligated to do. 

This was their latest response : " Thank you for inquiring about a school misconduct discharge for your XXXX XXXX XXXX Student Loans. Please be advised, our records confirm that weve previously addressed your concerns regarding your loans ineligibility for school misconduct discharge. While we understand why this matter is important to you, please note that our position on this matter has not changed. To explain further, each application is subject to our review and discretion. A variety of criteria are used to determine eligibility, including, but not limited to, proof of resulting harm, sufficient documentation supporting your claim, date when events occurred or when you experienced harm, etc. Because we review each application holistically, it is not possible to identify specific criteria that caused your application to be denied. Navient considers a variety of factors in determining whether a private loan should be discharged based on school misconduct. That analysis is confidential and proprietary to Navient. '' This is not a satisfactory explanation or resolution to my problem. They consider a variety of factors? Like what? How about the factor that my school committed misconduct and didn't fulfill their promises when they persuaded me to enroll and then with Navient 's help buried me under a mountain of debt?