Consumer complaint received 2017-01-19
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Don't agree with fees charged
Company: Navient Solutions, LLC. (GA)

Prior to XXXX school graduation, wanted to take my loans out of deferrment but was not able to under the current rules. I mention this because the rule how it stands only benefits the banks. As a graduate student mandatory deferment and lack of ability to consolidate until after graduation is a cash cow for the Banks. There was no option for anyone with the financial ability to place their loans in repayment and consequently pay principle and interest. Therefore we the lenders were left treading water with only the ability to pay interest. If the loan ( s ) were able to have entered repayment they would have been capitalized and payments would go towards both principle and interest, thereby, reducing repayment term and expediting repayment. The rules as they now stand is a win, win for Banks. By not providing an option for those with the ability to capitalize a loan and enter into repayment, the current rules, serves only the banks and is a huge disservice for consumers. 

Secondly, the lender XXXX up my initial application for standard consolidation repayment. Based on numbers initially upon my application I was approved for a XXXX year term. Once approved the consolidated loan 's term was reduced, by the lender, at my request, to the XXXX year term standard repayment. 

Because Navient 's representative misinformed me on my initial online application ... had to reapply with paper application. I waived any delay requesting any loans in deferment that were being included went into repayment immediately on approval. My application was approved and was scheduled to go into repayment XX/XX/XXXX. When I was able to review my summary of charges I realised I was not entered into repayment until almost two months from my scheduled date amassing interest charges of almost {$600.00} in accrued daily interest rates. When I pointed out that my paperwork showed the loan repayment date of XX/XX/XXXX I was told ignore what was on my online account and refer to the micro print on the online " terms of agreement. '' Bear in mind automatic bank repayment was set up and ready to begin on XX/XX/XXXX, as clearly stated on my online account ; therefore, why was I charged all this additional interest. 

Frankly this is a patently unfair practice. Everything was processed on my end including consolidation loan approval ... why should I be penalised if the bank chose to delay the time for repayment which benefitted them to large interest profits at my expense. 

Furthermore, Navient has only recently added the ability for consumers to see an itemized spread sheet on their accounts that shows exactly accumulated running balances in real time. Prior to this the consumer had to do all their own calculations to determine their running balances. Then they would have to have their account balances numbers verified by Navient 's customer service accounts department. 

In this day and age that was outrageous. Technology is such that there was NO excuse to allow student 's to be left in the dark with such an outdated system. 

There are other issues I had as well that go back to transfer of accounts from XXXX XXXX XXXX accounts, prior to transfer of those accounts to Navient. The problems occurred whereby a single loan was seperated into XXXX accounts. This allowed a single loan distributes over two periods within a semester being listed as XXXX sepearate accounts for the same loan distributed per semester. Therefore timelines were extended and subsequently more interest and thus profits for the servicer. The only way the consumer would know that the lender 's were splitting their loans up this way is when the consumer called confused with how payments were being applied to what they logically assumed were XXXX seperate accounts. The consumer was then told " they are the same accounts. '' However, this did not stop the lender 's from continuing to benefit from this type of " scheme.