Consumer complaint received 2025-09-04 00:00:00
Product: Student loan — Private student loan
Issue: Issue with income share agreement — Payment issues
Company: Navient Solutions, LLC.
State: TX

Complaint narrative:
COMPLAINT DETAILS What happened? 
XXXX approved my private student loan discharge for school misconduct related to The XXXX XXXX XXXX XXXX documented fraudulent practices, but refuses to refund the majority of payments I made on these fraudulent loans, in violation of federal law. 
Background : I attended The XXXX XXXX XXXX XXXX and obtained private student loan ( Account # XXXX ) The XXXX XXXX engaged in well-documented fraud, including falsifying employment rates ( claiming 80 % + when actual rates were below 57 % ) and salary data The schools parent company ( XXXX ) paid {$95.00} XXXX in XXXX for fraudulent practices and {$100.00} XXXX in additional settlements The school lost accreditation in XXXX and closed XXXX approved my School Misconduct Discharge application, acknowledging the institutional fraud They discharged my remaining balance of {$5900.00} and removed the loan from my credit report The Problem : Despite acknowledging the fraud by granting the discharge, XXXX only refunded {$50.00} in payments made after XX/XX/XXXX, while retaining {$7800.00} in payments I made from XXXX on the same fraudulent loans. 
Legal Violation : Under the Federal Trade Commissions Holder in Due Course Rule ( 16 C.F.R. 433.2 ), loan holders/servicers are subject to ALL claims and defenses that borrowers could assert against the original school. Since XXXX determined the loans were based on institutional fraud ( evidenced by their discharge approval ), they must refund ALL payments made on those fraudulent loans. 
What would be a fair resolution to this problem?

1. Full refund of all payments made : {$7800.00} ( total payments of {$7900.00} minus the {$50.00} already refunded ) 2. Immediate processing without further delay or proprietary analysis 3. Written acknowledgment of the FTC Holder Rule violation and corrective action taken 4. Interest/compensation for the time value of money improperly retained Companys Response to Your Complaint : I sent a formal demand letter on XX/XX/XXXX, citing specific federal regulations and documented fraud. XXXX responded on XX/XX/XXXX, acknowledging my School Misconduct Discharge approval but denying further refunds based on vague variety of factors and confidential and proprietary analysis.

Their response fails to address : The mandatory nature of FTC Holder Rule protections ( 16 C.F.R. 433.2 ) Why they can retain payments on loans they determined were based on fraud Any specific legal basis for partial rather than full refund The contradiction between acknowledging fraud sufficient for discharge while denying full restitution Additional Details : I have complete payment history showing {$7900.00} in total payments made XXXX own records confirm the School Misconduct Discharge approval The XXXX XXXX fraud is extensively documented through federal settlements XXXX  response provides no legal justification for retaining payments on fraudulent loans Supporting Documentation : Original demand letter dated XX/XX/XXXX XXXX response dated XX/XX/XXXX School Misconduct Discharge approval documentation Complete payment history records Evidence of XXXX XXXX fraud and settlements Personal Information : Name : XXXX XXXXAddress : XXXX XXXX XXXX XXXX, XXXX XXXX, TX XXXX : XXXXEmail : XXXXAccount Number : XXXX Amount in Dispute : {$7800.00}

Company response to consumer: Closed with explanation