Consumer complaint received 2024-04-12
Product: Student loan — Private student loan
Issue: Getting a loan — High pressure sales tactics or recruiting
Company: Navient Solutions, LLC. (WA)

I am writing to express my concerns regarding the student loan [ predatory ] practices at the XXXX XXXX XXXX XXXX XXXX XXXX ), a branch of the XXXX XXXX XXXX XXXX, which have led to significant financial difficulties for my family and I. The servicer they used for Private Student Loans was Sallie Mae. 

Important details : Attendance Dates : XX/XX/XXXX - XX/XX/XXXX Initial Loan Disbursement Amount : {$59000.00} Total repaid : {$40000.00} Balance as of XX/XX/XXXX : {$110000.00} Since my initial enrollment in XX/XX/XXXX, I was consistently compelled rather than encouraged to pursue private student loans to finance my education at XXXX. This sense of coercion has led to profound financial ramifications, significantly impacting my financial stability and future prospects. These private loans have been the source of considerable financial strain and has had an exceedingly negative impact on my financial well-being. 

Throughout my tenure at the XXXX XXXX XXXX XXXX interactions with counselors were infrequent, and when they occurred, it was near the conclusion of each academic term. During which the focus was predominantly on securing additional student loans, including private student loans, specifically from Sallie Mae ( now with Navient ). In retrospect, the emphasis of the XXXX counselors seemed to be on facilitating the acquisition of funds rather than providing comprehensive guidance on the implications and long-term consequences of such financial commitments. 
The student loans I took out were intended to cover both my tuition and what was purported to be " housing '' expenses at XXXX. However, despite this, I was never provided with a lease agreement, a breakdown of utility costs, or an itemized invoice for any housing-related expenses. This lack of transparency left me completely unaware of the true extent of these expenses. Whenever I inquired about these details, I was simply assured that the student loans would cover everything. 
Furthermore, the school operated under an egregious and high-pressure cycle, particularly before the beginning of each quarter. I felt constant pressure to sign student loan documents before classes commenced, and I was consistently urged to take the maximum credit course load and to utilize my private student loan credit and complete my degree " on time. '' Failure to comply with these demands was met with the threat from XXXX counselors of being unable to continue attending school during the following quarter unless I could provide proof of funding at registration or before classes began and maintain full-time student status. 
As a first-generation college student, I was unaware of the unethical and predatory nature of these practices at the time. It wasn't until I was nearing the end of my tenure at XXXX, particularly during the culmination of my studies when I prepared my portfolio for review, that I began to recognize these issues. In the XXXX XXXX XXXX XXXX XXXX students were required to compile and present their XXXX at the XXXX XXXX XXXX during their last quarter, marking the final step toward graduation. During these XXXX XXXX, students presented their work to department chairs and faculty members, who would then review and evaluate our XXXX. Ultimately, deciding whether we would be able to graduate. 
The challenge arose when students received critiques deemed unsatisfactory. While recommendations for improvement were provided by the chair and faculty, no specific rubric was given to clarify what constituted an unsatisfactory XXXX. Instead, it was left to the subjective discretion of the faculty members to determine satisfactory quality. If a XXXX received an unsatisfactory rating, the student would need to update it based on the critique before the following quarter 's XXXX XXXX. 
Herein lies a significant issue : the faculty members responsible for reviewing XXXX changed each quarter. Additionally, due to the lack of clear guidelines and the subjective nature of XXXX XXXX, the updated work was often evaluated by new members with differing opinions from those who originally reviewed it. This inconsistency created a situation where students ' efforts to improve their XXXX were hindered by shifting standards and subjective judgments. 
It's crucial to highlight that the XXXX XXXX occurred during the last quarter before graduation. However, students who did not pass were still strongly encouraged to maintain a full course load to remain in the program and participate in the next quarter 's XXXX XXXX. Failure to do so risked being dropped from the program, preventing attendance at the subsequent XXXX XXXX and graduation. 
In late XXXX, during my last quarter at XXXX, I attempted a second XXXX XXXX  and received an unsatisfactory critique. Realizing that attempting a third review and taking more courses was financially unfeasible for me, I made the difficult decision to withdraw from XXXX in XX/XX/XXXX. Little did I know that my struggles with the loans I was persuaded to take out had only just begun. I chose to work full-time instead of returning to pursue a degree in fear of taking out more student loans. I elected to forego necessities like XXXX XXXX during this time in order to receive more in net pay, and did not make enough to make ends meet. 
After the expiration of my six-month grace period, I began receiving the first of many statements to repay my student loans. The balance for my private loans at the time was over {$60000.00}. With my federal loans adding about another {$30000.00} or so. 
Upon facing this new financial predicament, I sought information about different repayment options from other former students of XXXX. However, when I inquired with Sallie Mae/NAVIENT about options such as income-based repayment, lower interest rates, or adjusting repayment terms, I received conflicting information on different calls. While my federal loans offered the possibility of income-based repayment, my private loans did not provide that option. 
For several years, I found myself unable to make the minimum payment for my private loans despite my efforts. Sallie Mae/NAVIENT offered me no resolution and even threatened default. Eventually, in about XXXX or so, I was informed that I could make interest-only payments, but was warned that the interest rates would rise as they were variable, which indeed happened, reaching double digits. Despite my efforts to make payments and sacrificing basic necessities, I saw my balance continue to grow. 
The financial strain I experienced caused me distress in the years after leaving XXXX. It wasn't until XXXX, on the brink of financial ruin, that I made any progress. It was at this time, I made the decision to enlist in the XXXX XXXX. While I wish I could say it was driven by a personal calling or a desire to make my family proud, my primary motivation was to cap my interest rates through the Service Members Civil Relief Act. 
However, my efforts to enlist were immediately impeded. Before finalizing my enlistment, I needed to obtain official copies of my college transcripts. XXXX students were unable to begin their classes until payment for the classes was secured, however, when I went to obtain my transcripts in XX/XX/XXXX, I was told I needed to pay a final balance before they could provide me with transcripts. When asked for an itemized bill, while they were able to provide one, they were unable to answer my questions regarding why I had the balance, considering I withdrew XX/XX/XXXX, and charges on the bill included charges from XXXX and XXXX and XXXX. Again, when I left XXXX, I had a significant student loan balance, however, my balance at XXXX was {$0.00}. I pressed for reasons why, but was told that there was nothing that could be done, and that fortunately I wasn't sent to collections so XXXX could receive payment directly. As mentioned, I was on the brink of financial ruin and needed desperately to obtain my transcript to enlist in the XXXX. The XXXX employee even had the audacity to suggest to me to take out a personal loan to cover the cost of the bill. Fortunately, I was able to borrow the money from my relatives, and joined the XXXX. 
In XXXX, I officially enlisted in the XXXX. This allowed me to postpone payments on my student loans, without going into default, until I figured out my financial situation. Around this time frame Navient became the new lender for my student loans. It seemed as though after I joined the XXXX the calls from /NAVIENT became less and less. However, I did not want to postpone my student loans too long, as my goal was to pay off my student loans as quickly as possible. But by XXXX I had been making payments for a few years at that point with the balance only getting bigger. Fortunately, my interest rate went from the double digits down to 6 %. Despite joining the XXXX, $ XXXX {$1200.00} minimum monthly payments were not feasible, and I continued to find ways to lower the rate, adjust payment terms, or find some income-based repayment for my private student loans. However, over the next couple years, it seemed as though depending on the representative I would receive different answers for those questions. From one person to the next as far as if a loan could be included in various states of repayment or programs. As far as I was concerned it was obscured on purpose, and the reality was that the Navient representative could not, or would not help. As the years passed after withdrawing from XXXX, I found out that private student loans have minimal repayment options other than standard. I also learned that regardless of the repayment option, balances will continue to grow. Which is what has happened with my account. Over the last 10 years or so I have applied payments towards my private students. And the increase has been significant, with the aggregate balance, as of XX/XX/XXXX, having increased over 90 % no matter how much money I have applied to my loans. I have tried addressing principal, interest, and asked for explanations of how much and how long it would take to pay off my loans in their entirety, I pay more than the minimum payment, and yet my balances continue to increase dramatically. 
In XXXX I found out that the borrower defense to repayment had expanded to include schools that misled students, even those that did not close within 6 months of withdrawal. Unfortunately, I applied and was denied in XXXX, and, until recently, I had over {$160000.00} in student loans from XXXX ( this included my federal loans ). I reapplied in XXXX. And later saw there are several people like me who suffered because of XXXX and other for-profit colleges greed, and the XXXX XXXX XXXX case allowed my federal XXXX loans to be discharged. Specifically, XXXX was one of the schools listed in the XXXXXXXX XXXX XXXXXXXX settlement that would receive automatic discharge. XXXX was guilty for using fraudulent practices, illegal recruitment and enrollment tactics, etc. and preyed upon students for their own financial benefit. Then after withdrawal Sallie Mae and Navient were insensitive, uninformed, and are just as guilty as XXXX in unifying with them to offer private predatory student loans. 

For years after my experience with the XXXX XXXX and my attempted repayment to NAVIENT I have struggled with the burden of deciding, not what was in my best interest or my spouse, but putting every aspect of my future on hold, in order to pay my student loans. 

While I am thankful to be serving in the XXXX XXXX XXXXXXXX, this decision ultimately came after facing the ultimatum of enlisting to take advantage of military deferments and Service Members Civil Relief Act or defaulting on my student loans. 

I do not dwell on what the {$40000.00} in payments could have bought, but how many times I delayed starting a family, or investing towards retirement. Although it is difficult not to, considering I never finished my degree with XXXX nor did I ever work in the field I went to school there for. However, wIthout a doubt, every aspect of my financial position has been adversely affected by the weight of my student loans from my credit score, job opportunities, the APR for any credit ( auto, cards, etc. ).