Consumer complaint received 2016-06-17
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Trouble with how payments are handled
Company: Navient Solutions, LLC. (NJ)

In general, my greivances stem from the way Navient and XXXX XXXX have been handling my loans, in particular the capitalized interest on these loans. After reviewing my loan history, a few discussions we collegues in simliar situations, I came to the conclusion some of their practices are more than likely costing borrowers hundreds, if not thousands of dollars per year. In my case, right after college, like many other borrowers, I was n't in a position to make payments on my loans. So, like others, I took advantage of the forebearance terms. Now that I 'm in a position to tackle them, I realized that they more than once, altered the dates so that there would a lapse in my forebearance, which forces the interest on these loans to be capitalized. For example : A borrow requests forbearance for 6 months ending on XXXX XXXX, knowing that the interest will be capitalized at the end of this period, the borrower calls to request an extension of this forebearance before the period end date. In the perfect world the request is granted and the borrower has another chance to pay off the interest before it becomes apart of the principal. In my case this is exactly what happened but instead of processing the request prior to the period end date they have either been setting the start of the extension after the XXXX or simply not processing the extension at all. Or not processing the request at all. Increasing the amount I have to pay over the life of the loan. I did n't request adjustments in the past because I assumed these errors were my fault. When I called this past month and made them aware of the mistake, they agreed to the adjustment but forgot to adjusted my XXXX federal loan. When I called back the next day to state that they only made the adjustments on my department of eduaction loans, they gave me multiple excuses as to why an adjustment could not be made. XXXX of which was clearly a flat out lie, was that the interest is capitalized every quarter. The terms clearly state that interest will be capitalized : 1. When the loan enters repayment. 
2. When a deferment ends. 
3. When forbearance ends. 
4. When the loan defaults 5. A change in repayment plan. 
6. Loan consolidation. 
No where does it state that the interest is capitalized every quarter. I heard this from multiple navient employees which leads me to believe that this was not simply a one-time mistake by an incompetent employee. After being placed on hold for more than XXXX mins they peddled the same croocked excuse, this time by a senior XXXX XXXX XXXX could not at the company. As if she would be some how more convincing. I 'll admit that I was somewhat rude and for that I sincerly apologize. When the incompentence or negligence is consistent, it starts to seem somewhat deliberate. When we 're given excuses that do not seem valid like " the interest capitalizes every quarter '', it seems criminal. I made multiple requests for the transcripts of my calls to XXXX and Navient. In an effort to confirm that I made the error of not making those requests for extensions before capitalization occured, or simply, requesting the wrong date were my fault. They were denied. Based on my experience with these intermediaries, and the ongoing issues with the way they 've been treating our veterans, even if nothing comes of my requests for investigation, at least please consider suggesting to congress to remove them from this process as a whole. If they tried to take advantage of me via capitalization, there 's a chance they 're making the same " mistakes '' with other distressed borrowers. Removing them from the process will be beneficial to borrowers and the federal government. Thank you for your time. : )