Consumer complaint received 2026-01-01 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Navient Solutions, LLC.
State: OH

Complaint narrative:
CFPB COMPLAINT - STUDENT LOAN SERVICING VIOLATIONS COMPLAINT SUMMARY I am filing this complaint regarding serious student loan servicing violations involving my three private student loans ( two XXXX XXXX loans and one XXXX  XXXX  loan ), which have been serviced by Sallie Mae, Navient, and currently XXXX. Despite borrowing {$70000.00} and paying {$100000.00} over 14 years, I currently owe {$110000.00} due to what I believe are illegal servicing practices including improper forbearance steering, predatory interest practices, failure to properly apply payments, and violations related to my deceased cosigner. Only {$17000.00} ( 16.7 % ) of my payments have been applied to principal, while over 83 % went to interest and fees. 

LOAN DETAILS Original Loans : Loan 1 : XXXX XXXX XXXX ( Account ending in XXXX ) Loan 2 : XXXX XXXX XXXX XXXX Account ending in XXXX ) Loan 3 XXXX XXXX XXXX XXXX XXXX ( Account ending in XXXX ) Loan 1 - XXXX XXXX XXXX XXXX : Original Balance : {$18000.00} Current Balance : {$36000.00} Interest Rate : 13.250 % Total Paid : {$30000.00} Applied to Principal : {$4100.00} ( 13.7 % ) Applied to Interest : {$25000.00} ( 86.3 % ) Loan 2 - XXXX XXXX XXXX  XXXX : Original Balance : {$32000.00} Current Balance : {$52000.00} Interest Rate : 12.750 % Total Paid : {$47000.00} Applied to Principal : {$10000.00} ( 22.0 % ) Applied to Interest : {$36000.00} ( 78.0 % ) Loan 3 - XXXX XXXX XXXX XXXX XXXX ( with deceased cosigner ) : Original Balance : {$19000.00} Current Balance : {$30000.00} Interest Rate : 14.250 % Total Paid : {$28000.00} Applied to Principal : {$3100.00} ( 11.1 % ) Applied to Interest and Fees : {$24000.00} ( 88.9 % ) TOTALS : Total Original Amount Borrowed : {$70000.00} Total Current Balance Owed : {$110000.00} ( 168 % of original ) Total Amount Paid Since XXXX : {$100000.00} ( 149 % of original ) Total Applied to Principal : {$17000.00} ( 16.7 % of payments ) Total Applied to Interest/Fees : {$87000.00} ( 83.3 % of payments ) Original Loan Dates : XXXX Current Servicer : XXXX ( since XXXX ) Previous Servicers : Sallie Mae : XXXX XXXX XXXX Navient : XXXX - XXXX XXXX : XXXX - Present SPECIFIC VIOLATIONS AND CONCERNS 1. IMPROPER FORBEARANCE AND DEFERMENT STEERING Grace Period Ended : XX/XX/XXXX Extended Forbearance/Deferment Period with Capitalized Interest : XX/XX/XXXX through XX/XX/XXXX ( over 5 years ) During this period, I experienced financial difficulty making my payment amounts. Instead of being counseled about beneficial alternatives, I was repeatedly placed into forbearance and deferment programs. My payment history shows : Major capitalized interest balances added during this entire period Late fees assessed throughout this period ( XX/XX/XXXX - XX/XX/XXXX ) My last deferment payment was {$540.00} on XX/XX/XXXX, showing the dramatically reduced payment amounts during this period The Problem : At no time during these periods was I adequately counseled about alternatives to forbearance that would have been more financially beneficial to me. As private loans, these did not have access to federal income-driven repayment plans, but I should have been offered information about : Extended repayment plans that could have kept me current without massive capitalization Graduated repayment options Interest-only payment periods Other alternatives to full forbearance that would have prevented the devastating interest capitalization I experienced Instead, I was steered into forbearance options that caused interest to capitalize repeatedly and my balance to balloon from {$70000.00} to over {$110000.00}. With interest rates ranging from 12.750 % to 14.250 %, allowing over 5 years of capitalization was catastrophic to my financial future. I believe this practice was designed to benefit the servicer at my expense, as interest continued to accrue and compound during these periods, generating maximum revenue for the servicer while devastating my financial situation. 
I believe my situation is directly related to the predatory forbearance steering practices that resulted in Navient 's {$1.00} XXXX settlement with 39 state attorneys general in XXXX, which included violations related to both federal and private student loans. I request review of whether I am eligible for relief under that settlement or other remediation programs. 
2. PREDATORY INTEREST RATES AND EXCESSIVE CAPITALIZATION My three loans carry interest rates of 12.750 %, 13.250 %, and 14.250 % - rates that are extraordinarily high and border on predatory, particularly when combined with the aggressive capitalization practices employed during the 5+ year forbearance period. 
The Mathematical Devastation : I borrowed {$70000.00} I have paid {$100000.00} ( 149 % of what I borrowed ) I now owe {$110000.00} ( 168 % of what I borrowed ) This means I have paid back {$34000.00} MORE than I borrowed, yet I now owe {$47000.00} MORE than I originally borrowed Specific Concerns : Interest capitalization during the 5+ year forbearance period ( XXXX ) was allowed to compound repeatedly Late fees were assessed during forbearance periods when I was explicitly told I didn't need to make full payments The combination of high interest rates ( 12.750 % -14.250 % ) with aggressive capitalization practices appears designed to trap borrowers in perpetual debt Payment application appears structured to maximize interest collection and minimize principal reduction 3. GROSSLY IMPROPER PAYMENT APPLICATION The payment application across all three loans demonstrates a pattern that I believe violates basic fairness and potentially my loan agreements : Loan XXXX : 86.3 % to interest, only 13.7 % to principal Loan XXXX : 78.0 % to interest, only 22.0 % to principal Loan XXXX : 88.9 % to interest and fees, only 11.1 % to principal OVERALL : 83.3 % of all payments went to interest/fees, only 16.7 % to principal This allocation is extreme and suggests : Payments may not be applied according to the original loan terms Servicers may be using payment application methods that maximize their profit at borrower expense The multiple servicer transfers ( Sallie Mae Navient XXXX ) may have resulted in improper accounting or systematic errors Interest may be compounding more frequently than disclosed in original agreements I have maintained consistent payments for the past 5 years with NO missed payments. My current monthly payment is {$1300.00}, auto-debited from my checking account. Despite this perfect payment record and substantial monthly amounts, my principal barely decreases while interest continues to accumulate.

Payment History Details : Payments have ranged from {$540.00} ( XX/XX/XXXX, end of last deferment ) to {$1400.00} Current payment : $ XXXXmonth via auto-debit Five consecutive years of on-time payments ( XXXX ) Total of 14+ years of payments since XXXX 4. COSIGNER DEATH AND FAILURE TO PROVIDE REQUIRED DISCLOSURES XXXX XXXX  Option Student Loan ( account ending in XXXX ) had a cosigner, XXXX XXXX, who passed away on XX/XX/XXXX. 
Critical Timeline and Facts : XXXX School Year : Sallie Mae DENIED XXXX XXXX as a cosigner for additional loans due to his illness. This proves Sallie Mae had knowledge of his deteriorating health and created an official record of his medical condition. 
XX/XX/XXXX : XXXX XXXX passed away. 
Post-Death : I notified Sallie Mae of my cosigner 's death. I was NEVER informed of any cosigner release options, policies, or alternatives. I was never provided any documentation about how his death might affect my loan obligations or whether any relief options existed. 
Ongoing Payments While Cosigner Was Ill and After Death : I made monthly payments on this loan even while I was still in school, as required by the loan terms, to reduce interest accrual. I continued making payments throughout my cosigner 's illness and after his death, never receiving any guidance about my rights or options. 
Violations I Believe Occurred : Failure to Disclose Cosigner Release Policies : Many private student loan lenders, including Sallie Mae, have had cosigner release policies that allow release upon death. I was never informed whether such a policy existed or how to apply for it. 
Failure to Provide Required Death-Related Disclosures : Upon being notified of a cosigner 's death, servicers have obligations under various consumer protection laws to disclose how this affects the loan and what options may be available.

Knowledge of Illness Without Proper Disclosure : Sallie Mae 's XXXX denial of my cosigner due to illness proves they knew he was medically compromised. They had a duty to inform me of any policies related to cosigner release, particularly given their knowledge that he might not survive the loan term. 
Continued Aggressive Collection Despite Cosigner Death : After my cosigner 's death, the servicers ( Navient and then XXXX ) continued aggressive collection practices, including the 5+ years of forbearance with massive interest capitalization, without ever addressing the cosigner death or offering any related relief. 

I request full investigation into : Whether Sallie Mae, Navient, or XXXX had cosigner release upon death policies that were not disclosed to me Whether their knowledge of my cosigner 's illness in XXXX obligated them to provide specific disclosures Whether I was denied rights or relief I was entitled to under the loan agreement or consumer protection laws Whether the continued aggressive interest capitalization after cosigner death constitutes exploitation 5. MULTIPLE SERVICER TRANSFERS AND ACCOUNTABILITY GAPS My loans have been transferred twice, creating numerous opportunities for errors and loss of accountability : XXXX : Original loans with Sallie Mae XXXX XXXX Transfer from Sallie Mae to Navient XXXX : Transfer from Navient to XXXX Each transfer creates opportunities for : Payment tracking errors and misapplication Loss of documentation regarding cosigner death and related rights Improper accounting of principal vs. interest Failure to honor previous agreements, disclosures, or forbearance counseling obligations Gaps  in accountability for predatory practices Specific Concerns : Was information about my cosigner 's death properly transferred to each new servicer? 
Were payment histories accurately maintained across transfers? 
Did each servicer properly account for all capitalized interest events? 
Were late fees during the XXXX forbearance period legitimate, or were they errors created during servicer transitions? 

I request a complete audit of my payment and account history across all three servicers to identify any errors, omissions, or violations that occurred during or after these transfers. 

DEVASTATING PERSONAL AND FINANCIAL IMPACT This situation has destroyed my financial life and future : Housing : I can not qualify for a home loan. This debt-to-income ratio makes it impossible for me to purchase a home, forcing me to continue renting and losing the wealth-building opportunity of homeownership. 
My Children 's Future : I am unable to save for my children 's education. Having experienced this nightmare myself, I desperately want to help them avoid student loan debt, but these payments prevent me from saving anything meaningful for their futures.

Retirement Security : I can not save adequately for retirement. I had planned to max out my Roth IRA contributions each year, but these loan payments have made that impossible. I am now years behind on my retirement savings goals and face the prospect of working far longer than I planned or retiring in poverty.

Personal Relationships : This debt has damaged my ability to have meaningful personal relationships. I am terrified when someone suggests doing something that costs money. The constant financial XXXX  and inability to participate in normal activities has isolated me socially and created XXXX  around basic social interactions. 
Physical and Mental Health : I work 6 days a week most weeks just to make these payments and save a small emergency fund in case my car breaks down or an appliance fails. This grueling schedule leaves no time for rest, self-care, or enjoying life. The XXXX  is constant and overwhelming. 
The Cruel Mathematics : After 14+ years of payments, during which I have : Made every payment for 5 consecutive years without a single missed payment Paid {$100000.00} ( nearly {$35000.00} MORE than I borrowed ) Worked 6-day weeks to afford these payments Sacrificed homeownership, retirement savings, my children 's education funds, and my personal wellbeing I now owe {$110000.00} - nearly {$48000.00} MORE than I originally borrowed.

I have done everything asked of me. I have paid faithfully. I have worked myself to exhaustion. And I am drowning deeper every year.

This is not merely a financial problem- it is a complete destruction of my ability to build a stable, secure life for myself and my family. The practices of these servicers have not just cost me money ; they have stolen my future.

DOCUMENTATION I have the following documentation to support my complaint and am prepared to provide it upon request : Complete payment history for all three loans showing dates, amounts, and principal vs. interest application Payment records showing consistent payments and payment amounts ranging from {$540.00} to {$1400.00} Records showing forbearance/deferment period from XX/XX/XXXX through XX/XX/XXXX Records showing capitalized interest events and late fees during this period Documentation showing grace period ended XX/XX/XXXX Records of auto-debit payments from checking account Current account statements showing balances of {$36000.00}, {$52000.00}, and {$30000.00} Documentation of cosigner XXXXXXXX XXXX 's death XXXX XX/XX/XXXX Records indicating Sallie Mae denied XXXX XXXX as cosigner in XXXX due to illness Documentation showing I notified Sallie Mae of cosigner 's death Records of servicer transfers : Sallie Mae ( XXXX XXXX XXXX Navient ( XXXX ), XXXX ( XXXX ) REQUESTED ACTIONS I request that the Consumer Financial Protection Bureau : Conduct a comprehensive investigation into my loan servicing history across all three servicers ( Sallie Mae, Navient, XXXX ) for the period XXXX Audit payment application practices to determine if payments were properly applied according to my original loan agreements and whether the 83.3 % interest allocation is legal and proper Review forbearance steering practices from XXXX to determine if I was illegally steered into 5+ years of forbearance instead of being offered alternative repayment options available under my private loan agreements that would have prevented catastrophic interest capitalization Investigate predatory interest practices including whether interest rates of 12.750 % -14.250 % combined with aggressive capitalization constitute unfair, deceptive, or abusive acts or practices ( UDAAP ) Investigate cosigner death handling across all three servicers to determine if they violated policies or consumer protection laws by : Failing to disclose cosigner release options upon death Failing to provide required death-related disclosures and documentation Exploiting the cosigner 's death by continuing aggressive collection without offering entitled relief Having knowledge of cosigner 's illness ( XXXX denial ) without providing proper disclosures Review late fees assessed during forbearance ( XXXX ) to determine if these fees were legitimate or constitute improper charges during a period when I was explicitly told I didn't need to make full payments Determine eligibility for Navient settlement relief ( which covered private loan servicing abuses ) or other remediation programs related to the practices described in this complaint Order correction of loan balances if servicer errors, improper capitalization, payment misapplication, or illegal practices are found Order refund of overpayments and improperly assessed fees - I have paid {$100000.00} on {$70000.00} borrowed and now owe {$110000.00}. If violations are found, I request refund of excess interest and fees collected through illegal practices. 
Provide complete, accurate accounting of how every payment was applied to principal, interest, fees, and capitalized interest for each loan, with explanation of each capitalization event Investigate the following potential violations : Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Truth in Lending Act ( TILA ) violations Fair Debt Collection Practices Act ( FDCPA ) violations State consumer protection law violations Breach of contract ( loan agreements ) Breach of fiduciary duties to borrowers Violations of cosigner release and death notification requirements Improper forbearance steering practices Predatory lending and servicing practices Impose penalties and corrective actions on servicers found to have engaged in the practices described in this complaint to prevent other borrowers from experiencing the same devastation ADDITIONAL INFORMATION Current Financial Status : I am current on all payments, having made every monthly payment on time for 5 consecutive years ( XXXX ). My current monthly payment is {$1300.00}, auto-debited from my checking account. I have never missed a payment during this period despite the extreme financial hardship these payments create. 
Alternative Repayment Options : As private loans, these Signature Student and Smart Option loans were not eligible for federal income-driven repayment plans. However, I was never offered or counseled about alternative repayment arrangements that could have prevented the massive interest capitalization I experienced during the 5+ year forbearance period from XXXX. Had I been properly counseled about options like extended repayment, graduated repayment, or interest-only payments during financial hardship, I would not now owe {$110000.00} on loans I borrowed {$70000.00} for, despite having already paid {$100000.00}. 
Good Faith Efforts : I have demonstrated extraordinary good faith throughout this process : Paid on the XXXX XXXX XXXX even while still in school to reduce interest Notified Sallie Mae promptly when my cosigner passed away Continued making payments consistently despite devastating financial impact Made every payment on time for 5 consecutive years Currently work 6 days per week to afford these payments Have paid 149 % of what I borrowed while asking for nothing but fair treatment Pattern of Predatory Conduct : I believe my experience represents a clear pattern of predatory servicing practices that have been documented in lawsuits and settlements against Navient and other servicers. The combination of : Forbearance steering ( 5+ years ) Excessive interest rates ( 12.750 % -14.250 % ) Aggressive capitalization practices Failure to properly counsel on alternatives Exploitation of cosigner 's death Payment application that maximizes servicer profit ... demonstrates a systematic approach to extracting maximum revenue from borrowers while trapping them in perpetual debt, regardless of their good faith payment efforts.

This Must Stop : If servicers can take a borrower who pays {$100000.00} on a {$70000.00} debt and still leave them owing {$110000.00} - if they can take someone who works 6 days a week, makes every payment on time for 5 years straight, and has sacrificed their home, retirement, and children 's futures- and still have them drowning in ever-increasing debt - then the system is fundamentally broken and predatory.

Company response to consumer: Closed with explanation