Consumer complaint received 2019-02-19
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem lowering your monthly payments
Company: Navient Solutions, LLC. (NY)

I began borrowing during the recession and somehow the interest rates associated with my federal loans ( 6.75 % ) are higher than my current private student loans, which have a much larger balance. Why is the government allowed to charge higher rates than private, for-profit institutions? Why isnt any benefit given to individuals who have successfully managed their credit after college? Additionally, my sisters went to school in the decade before me and somehow managed to snag interest rates of only 3-4 %. This feels like an additional tax punishing people for not having the means to pay for college, but attempting to make a better life for themselves. This is further proven by the fact that a maximum of only {$2500.00} of interest is deductible annually with a fairly low AGI phaseout and ZERO consideration of how much income is actually contributed towards making on time payments to student lenders. After all of this I'm not even going to be eligible for loan forgiveness because my loans are estimated to be paid off by XXXX ( started repayment in XXXX ) even with this insanely inflated interest rate. It feels like Im being held to a higher standard, and am continuing to pay for other peoples loan forgiveness eligibility ( public service, disability, etc ). 

Additionally, the amounts of subsidized vs. unsubsidized balances were determined including my parents ' income information, but nothing was reconsidered after releasing them as co-signers at consolidation. Why are independent adults being punished for wanting to be fiscally responsible without having to rely on/burden their parents with these large debt amounts? I have no problem paying back funds borrowed for my education, but the higher education landscape has changed significantly since that time. Tuition rates were still on the rise, whereas now some institutions have reduced tuition to pre-recession rates. Interest rates have dropped significantly since that time and instead of Congress re-adjusting accordingly, they continued to burden and capitalize interest at a rate preferential to providing income for the government, rather than what may be in the best interest of the borrower. The NYS Excelsior scholarship ( https : //www.hesc.ny.gov/pay-for-college/financial-aid/types-of-financial-aid/nys-grants-scholarships-awards/the-excelsior-scholarship.html ) did not exist, which would have influenced my decision for school choice, and would have reduced the overall balance that was needed in loan money. 

Finally, the overall balance is negatively impacting my ability to qualify for other financial vehicles that has the potential to advance my overall/long term wealth and life ( i.e. - mortgages, XXXX  credit card for future children/neices/nephews education, marriage, further debt consolidation, etc ). This is a serious problem for me. I was completely unaware at the time of applying for financial aid my freshman year that a formal appeal process was possible. Despite my father losing his job when I was a junior in college, I was only offered a {$400.00} grant from the private educational institution I attended. I get that funds were limited at that time due to many people being impacted. However, I somehow ended up with over 6 figures in debt - despite reducing the amount privately borrowed on an annual basis, finishing my undergraduate degree a year early, obtaining a merit scholarship to cover half of my tuition for my undergrad, living off campus during my XXXX, and working 30-40 hours/week the entire time I was in college while maintaining a 3.5+ GPA for my undergrad/graduate degrees.

I always continued to apply for and obtained private scholarships to assist with the cost of books at that time. I never used my funds for anything other than school/living expenses. Ive done everything since then to figure out how to get out from under this sea of debt that I am drowning in, and didnt know any better to prevent/minimize the impact at the age of XXXX because my parents never obtained college degrees. I still continue to look for possible solutions, but to no avail. Ive applied for multiple federal jobs for Public Student Loan Forgiveness ( PSLF ). Im not eligible for forgiveness based on the years I went to school through New York State ( https : //www.hesc.ny.gov/repay-your-loans/repayment-options-assistance/loan-forgiveness-cancellation-and-discharge.html ).