Consumer complaint received 08/23/2017 about Student loan (Federal student loan servicing) with Navient Solutions, LLC. (KY).
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint: In XX/XX/XXXX, I was a student at XXXX XXXX XXXX - XXXX, Ky. pursuing my degree in XXXX XXXX. After my second quarter at the school, financial aid explained that our loans were not enough to compensate for the distributions sent by the XXXX XXXX XXXX. We were told, In order for us to get our equipment and books, we must apply for a private Peaks loan or find money elsewhere. We signed up for the {$3000.00} loan that had a 23 % interest rate, just to continue our education.

Due to hardship and financial reasons, I had to withdraw in XX/XX/XXXX. My student loan was placed in default. In order for me to attend school again, I had to make monthly payments to the XXXX XXXX XXXX just to be able to re-attend XXXX XXXX XXXX - XXXX, Ky. I restarted in XX/XX/XXXXat the XXXX  campus. This 2-year XXXX XXXX degree was taking me 6 years to attempt to complete. I was to graduate last year XX/XX/XXXXto be exact. You can only imagine how heartbroken I was to find out that my Final semester of school would not be completed due to the school closing.

I have applied for the school closing form issued by Navient ( my lender ). They only honored the XX/XX/XXXX-XX/XX/XXXX school year and removed the discrepancy from my account with the XXXX XXXX XXXX. The only thing is that they ONLY honored XX/XX/XXXX-XX/XX/XXXXschool years and not from the beginning when I signed up for school in XX/XX/XXXX. I did not change degrees nor was I enrolled in any other school except XXXX XXXX XXXX. All of the loans acquired from XX/XX/XXXXfrom Navient were for my education at XXXX XXXX XXXX.

Discharge Criteria You may be eligible for a 100 % discharge of your Direct Loans, Federal Family Education Loan ( FFEL ) Program loans, or Federal Perkins Loans under either of these circumstances : Your school closes while you 're enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school.

Your school closes within 120 days after you withdraw.

( Education, n.d. ) From reading this information, I was enrolled within 120 days of the school closure. I do not understand why I have to pay {$32000.00} for an education I did not receive.

UPDATE : I have made numerous calls to Navient and the XXXX XXXX XXXX Ombudsman group. I was told that there was nothing that they could do to help. I was also told, by both parties, We have a set of guidelines that were given to us from the XXXX XXXX XXXX.

I asked for direct documentation of these guidelines and was told to search for them, myself, on the website http : //ecfr.gov. This database was huge! I asked the ombudsman where can I find the regulation and she stated that I had to find it myself. She was not helpful. After some time and a lot of patience, I finally discovered the Federal Regulation.

Link : { https : //www.ecfr.gov/cgi-bin/text-idx? SID=a6ba18b03528ed7a03396ee9cd1e1049 & mc=true & node=se34.4.685_1214 & rgn=div8 } The contents of this regulation justify my findings and the XXXX XXXX XXXX/Navient are unlawful in their decision, by not granting me amnesty for this loan.

Part of the problem is that the the DOE is doing business with ( the loan servicers ) as partners, not as overseers, said XXXX XXXX, a former official with the DOE and the CFPB who is now a senior fellow with the Consumer Federation of America, an association of consumer watchdog groups. ( Conlin, n.d. ) My credit score reflects 14 missed or late payments to Navient for the same student loan to XXXX XXXX   Instead of one account showing 2 missed payments, there are 7 accounts, each showing 2 missed payments for the same loan, all of which have different interest percentages. My account is currently in forbearance and drawing interest daily.

For the past year, my life has been placed on hold due to a poor credit score, and incorrect information about the school closure form. XXXX XXXX XXXX XXXX and Navient should be held responsible for this injustice.

XX/XX/XXXX, I received a call from XXXX XXXX of Navient again and she explained that the XXXX XXXX XXXX told her to contact me in reference to this matter. She repeated that there was nothing she could do and I could re-submit a school closure form to Navient. She stated that Navient only allowed the final part of the distributions to be removed from the loans and that I had to be in school continuously at XXXX XXXX XXXX. I advised her that the Federal Regulations state otherwise and the regulations she has are incorrect and unlawful. She explained that the regulations, in fact, came from the XXXX XXXX XXXX. I then request XXXX XXXX   to send me a copy of the regulation that she has f, so I may compare it to the CFR. She did agree to send a copy to me email address, of which I have not yet received.

Company response to consumer: Closed with explanation