Consumer complaint received 07/27/2017 about Student loan (Private student loan) with Navient Solutions, LLC. (MS).
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint: Dear CFBP : Let me first start saying throughout the duration of my loan I have never understood XXXX XXXX ( XXXX ) /Navients practices or policies. I have not understood my loan from XXXX-present. I have made several phone calls trying to understand it. I was never given initial paperwork of their policies & practices. When I went to college things started out rough for me. I was a XXXX refugee I had lost my home ; my job ; and my college where I had a partial scholarship. I had not lived anywhere besides my hometown.
In XX/XX/XXXX, I ran into a financial hardship. I contacted XXXX XXXX to try and lower my monthly payments. They were not willing to talk with me regarding this. I quit paying them to make my point good and clear. I got a final notice in XX/XX/XXXX to pay my loans or I would face garnishment.
In XX/XX/XXXX, I contacted XXXX and spoke with XXXX. I explained to him that I couldnt afford to pay the monthly payments. He offered a rate reduction program. He explained that my interest rate would go down and which would bring my monthly payment down. He said in order for me to be applicable for this program I had to meet with a credit counselor from a third party company and let her determine it.
I met with that counselor and was approved for the rate reduction program. I was never told by XXXX XXXX or the credit counselor that this program was a forbearance or deferment. However, the statement reflects this. In XXXX nothing was paid towards principle it was all applied towards interest. However, it reflected a 3 % interest on each loan. It was as if I did apply for a deferment or forbearance because nothing went towards principle.
In XXXX, I tried reapplying for this program ( not knowing the penalties ). XXXX XXXX had changed their policies. When you applied for this program you no longer met with a credit counselor. I received uneducated financial advice from XXXX XXXX. I didnt trust them. I was told that since I had a {$100.00} left at the end of the month with bills paid and groceries. That gave me no room for emergencies. Also, the {$100.00} would be allocated to XXXX XXXX not to my emergencies. Some months I had to put expenses on my credit card or borrow from my family.
I met with a credit counselor at my bank in XXXX and she couldnt figure out how the interest rate accumulated or how it was assigned. She disagreed with the decision from XXXX XXXX and gave me financial advice.
Throughout XXXX-XXXX/XXXX, XXXX XXXX/Navient gave no choice for how your money was allocated. So when I paid {$260.00} I never knew how it was applied I was never given the option. In XXXX/XXXX, Navient/XXXX restructured their website and I was able to allocate how my money went. However, to this day when I pay an extra amount it says You are paying and extra {$160.00} to your account this will go towards next months payment It doesnt say which loan and I know it doesnt go towards principle because the attached statement doesnt reflect that. My account reflects a XXXX balance but I have {$21000.00} left to pay. Its almost as if I have balloon interest at the end of my loan which I never signed up for ; was never given acknowledgement of ; and was never told. The extra {$160.00} doesnt go towards principle all the time.
Lastly, I have called trying to figure out how XXXX/Navient is basing the interest rate. They cant tell me what prime rate/origin they are getting it from. They can only tell me the daily rate for the loan for that month. Getting this information requires me being on hold for 45 minutes.
From XXXX-XXXX the economy wasnt doing well. I recall at one month being charged a 14 % interest rate for each of my loans. I have thoroughly tried paying off this debt even when going through financial hardships ( Katrina ; loss of my husbands job ; pay being reduced ; etc. ). However, I think they have misallocated funds and have been deceitful in their practices. They are extending the terms of the loans.
I started out of college with a {$32000.00} debt. I borrowed {$22000.00}. Two years ago was when I finally met the capitalized interest on one loan.
The interest rate is climbing on my loans presently from 9.25 % to 10.25 % and 9.75 % to 10.75 %. To date my loan is between {$20000.00} to {$22000.00} ; close to what I originally borrowed. I havent returned to college to finish my degree due to this outstanding debt.
I am presently going through each month and seeing how they allocated their funds because I did take notes. When I look at my statement ( attached ) it doesnt reflect the interest rate for that month nor does it reflect the daily rate for each month.
I am asking you to look into my loans and give me answers that I have been trying to get for years.
I am also asking that you give all us student loan borrowers a voice.
Please sanction this company ; penalize them.
Quit allowing them to take advantage of students.
Quit allowing them to service student loans.
Quit allowing loan companies to offer variable interest rates for student loans. It creates no better future for students. It doesnt create a good economy it creates debt. It also, doesnt allow students to go further in their education/career.

Company response to consumer: Closed with explanation