Consumer complaint received 2019-04-19
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Navient Solutions, LLC. (MA)

I find that my experience with these loan servicing companies misrepresented to borrowers they were on track for PSLF when in fact their loans would not qualify for PSLF without consolidation. 

I ascertain that from XX/XX/XXXX until XX/XX/XXXX, Sallie Mae, Navient, and XXXX XXXX XXXX misrepresented to borrowers that they were on track for Public Service Loan Forgiveness, ( PSLF ) when in fact their loans would not qualify for PSLF without consolidation. 

I began repaying my Student loans in XXXX of XXXX, which were managed by Sallie Mae and then Navient, as time progressed. When determining my repayment plan I would be making, I had informed the customer service representatives from XXXX XXXX to XX/XX/XXXX that I worked for a XXXX XXXX agency and I wanted to be apart of the Public Loan Forgiveness Program . I inquired what steps had to take in order to be eligible for this, and was informed that I would have to enroll in Income Based repayment plan. There was no discussion or information that in order to be eligible I would have to consolidate my loans into a direct loan. 

I continued to make payments to Sallie Mae and then Naivent, on the Income Based Repayment Plan throughout XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, and XXXX while I remained working at XXXX ( XXXX ) ( XXXX ) XXXX XXXX, believing that I was still on track for PSLF. 
In the beginning of XXXX, I learned on Federal Student Aid Website, that if you were working towards PSLF that you should submit the Employment Certification for Public Service Loan Forgiveness form. I began have my employers in completing these forms, and submitted them to the U.S. Department of Education I received a letter from Navient, On XXXX XXXX, informing me that the U.S. Department of Education ( ED ) was transferring your loan account to XXXX XXXX ( XXXX ) because you requested to participate in the Public Service Loan Forgiveness ( PSLF ) Program. XXXX XXXX ( XXXX ) is EDs servicer that provides customer service for all federal student loan borrowers who are potentially eligible for PSLF and tracks their progress toward qualifying for PSLF. This change in servicer will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans. 

Your loan account will be transferred to XXXX XXXX ( XXXX ) on or about XX/XX/XXXX. If ED doesnt transfer your account as planned, well let you know. 

I received a three letters from XXXX XXXX XXXX on XX/XX/XXXX, stating that I had 7 student loans ( Direct Sub Stafford, Direct Unsub Stafford, Federal Stafford Loans, and Federal unsub Stafford loans ) transferred over to their program. It stated Information Regarding Your Eligibility Tracking for Public Service Loan Forgiveness We will calculate and provide you with notification of the number of qualifying payments you have made during the period ( s ) of qualifying employment, the estimated number of payments that are still required, and the date you are expected to be eligible to apply for forgiveness. Because each account must go through a detailed review process, providing you with these details may take a great deal of time. Expect to hear back from us no sooner than 90 days from today. There was no mention that any of my loans that were transferred to them were ineligible for Public Service Loan Forgiveness ( PSLF ) Program, unless they were consolidated.

Four of my remaining student loans ( Stafford Subsidized and Stafford unsubsidized loans ) remained to be serviced by Navient. 

From XXXX until XX/XX/XXXX, I awaited for XXXX XXXX XXXX to certify my remaining employers and completed the above calculations. Again, there was no mentioned that any of my loans were ineligible for Public Service Loan Forgiveness ( PSLF ) Program, unless they were consolidated. 

I sent an email and submitted a letter to XXXX XXXX servicing on XX/XX/XXXX inquiring as to the status of calculations of my qualifying payments during period of qualifying employment, the estimated number of payments that are still required and that date that I would be eligible to apply for forgiveness. 

I received an email response from XXXX  XXXX XXXX on XX/XX/XXXX stating We apologize for not yet being able to provide you with the number of qualifying payments made toward Public Service Loan Forgiveness ( PSLF ). Since each account must go through a detailed review process, providing you with these details can sometimes take a great deal of time. 

I called XXXX XXXX XXXX XX/XX/XXXX to inquire about that status of my calculations of my qualifying payments during period of qualifying employment, the estimated number of payments that are still required and that date that I would be eligible to apply for forgiveness. The representative that I spoke to, then informed me that four of my student loans ( Federal Stafford Loans, Federal unsub Stafford loans ) totaling {$28000.00} were not eligible for forgiveness, as there were not a Direct Loan. No one in any prior communication at Sallie Mae, Navient, or XXXX XXXX XXXX, prior to XX/XX/XXXX, had informed me that I had to consolidate these loans in order to be eligible for the Public Loans Forgiveness Program. I then inquired about the four remaining loans that at were not transferred over to XXXX XXXX XXXX when I applied in XXXX and remain being serviced by Navient ( Stafford Subsidized and Stafford unsubsidized loans ) totaling XXXX. I had informed her that I was under the assumption, that all loans that the U.S. Department of Education transferred over to XXXX XXXX XXXX were eligible for forgiveness totally approximately {$50.00}, 000. I was under the impression that my remaining loans at Navient ( approximately {$8000.00} ) were the only ones there were not eligible for forgiveness. The customer service representative was not aware of my loans at Navient and was unable to explain why these loans did not transfer over to XXXX XXXX XXXX in XXXX with my remaining loans. I was transferred to a supervisor who was also unable to explain why I continued to have loans with Navient and informed me that if wanted these loans to be eligible for Public Loan Forgiveness, that I would have to consolidate all Federal Stafford Loans and Stafford Loans into one direct loan of approximately 38,000. I would then have to make 120 ADDITIONAL qualifying payments prior to those loans being eligible for forgiveness. None of my prior qualifying payments that I had made towards these loans over the past 7 and half years while working for XXXX ( XXXX ) ( XXXX ) XXXX XXXX could or would be applied for Forgiveness. 

I find that my experience with these loan servicing companies misrepresented borrowers they were on track for PSLF when in fact their loans would not qualify for PSLF without consolidation. I have begun the process to consolidate my ineligible loans at this time. However, All loan payments that I have made towards these loans, during periods of qualifying employment, should be counted retroactively towards PSLF from time that I was informed that I had to consolidate my loans on XX/XX/XXXX. I should not be penalized for information that was never communicated to me.