Consumer complaint received 2024-03-25 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Navient Solutions, LLC.
State: FL

Complaint narrative:
I have 3 private student loans with Navient. Back in XXXX they were put into in school deferment status without my consent. When I re-entered school at least half-time, in XX/XX/XXXX, I checked Navients website to find out if I needed to do anything to prevent my loans from going into deferment, as I didnt want this to occur. The following is what I found : 1. On their Help center, Common Questions page there are two sections that speak about deferments. Both are under the Apply for section. The first, is A Deferment, the second, is An In-School Deferment. Under both sections it says for private loans that you must contact them at XXXX to see what options your loan is eligible for. 
2. In both of those sections the last line is a hyperlink ( one for private and one for federal loans ) where you can find out about deferments. I selected the private loan link. It brings me to a new page about private loan payments. On this page, if you select Deferment it tells you that to apply you must Complete a deferment request form and return it to us. There is no unique section for in-school deferment in this situation. However, the information in the introductory paragraph as well as the description of types of deferments both show in-school as a type of deferment so this information must apply to that type too. 

After that research I determined that there was nothing I needed to do because I did not want a deferment and their website indicated I would have to apply for an in-school deferment if I wanted it. 

I periodically check my account with Navient about every 2 months. Every time I would log in my payment would show {$0.00} owed. This is typical. When you select the i icon next to the payment amount it states that your payment amount will show as {$0.00} when you are enrolled in autopay. I have been in autopay for years now so this explanation made sense and aligns with what I expected my account to show during a normal payment period. 

On Wednesday, XX/XX/XXXX when I checked my account I noticed the total balance on my loan did not align with what I expected. I looked further and realized my payments had not been taken out. I also realized that Navient capitalized interest on XX/XX/XXXX in the amount of {$220.00}. I immediately knew something was wrong and started searching my entire account and it was only after drilling into the specific details of the loan discovered by drilling far into my loan details that my loan status was in-school deferment on my 3 loans. I called Navient. I spoke to a representative, XXXX, and asked for a supervisor immediately because I knew this was beyond the practices of the front-line workers. 

The supervisor confirmed my account was in an in-school deferment status. She stated that in-school deferments were automatic. I advised her that this is contrary to everything on their website and detailed the locations where I had received all of the information ( as Ive listed above in this statement ). She reiterated it was automatic and that I should know that my status was in-school deferment because I was notified based on my monthly statements. I informed the supervisor that this was not the case. Statements do not have the loan status on them and that I actually do not ever get notified by Navient that my statements are ready, I just have to know to log into Navient, despite getting refinancing email offers from them on almost a daily basis. ( Unsurprisingly, on Friday, XX/XX/XXXX after this call to Navient, I received the first email in years notifying me a statement was available in my Navient account ). However, as I informed the supervisor, not a single section on the statement shows my loan is in a deferment status. Therefore, the information the supervisor was providing me was false. I also let her know that I have no specific documents in my Navient inbox ever telling me the status was changed as is customary on federal loans. 

I again asked how I was to know that this occurred. She only could tell me it was automatic even though there is no indication that this is proper practice for private loans based on their website. I told her that I find this to be deceptive loan practices and that I feel Navient is telling borrowers one thing while doing another that is more favorable for their income generation. I let her know the resolution I wanted was : 1. The {$220.00} of interest that was capitalized in XXXX was to be uncapitalized. 
XXXX. The interest that has accrued on the {$220.00} since XXXX should be credited back to my account. 
XXXX. My loan should be removed immediately from an in-school deferment status effective XX/XX/XXXX. 

She said she could not do the second one but could do the first and third. I still do not believe this is satisfactory but accepted as the first and third were the immediate concerns. 

She did not offer any information about when I would need to repay the interest or how quickly this would occur. I had to prompt for all of this information. She stated it would take about 2 weeks ( 10 business days ) to process and then I would get a letter in the mail letting me know it was completed. I asked how quickly I needed to repay the uncapitalized interest ( {$220.00} ). She stated I should do it as soon as possible because that payment will be considered delinquent. Although flabbergasted that they could call my account delinquent immediately upon rectifying their error I notified her I would check my online account in 1 week and make the payment on the uncapitalized interest immediately and then would expect to have my normal payments come out. We then ended the call. 

On Sunday, my cosigner ( mother ) received a voicemail from Navient that I was delinquent and about to enter default. I also received a call from a California number but was not left a message and assumed it was spam. Today, Monday XX/XX/XXXX I received a call from Navient and this time they left a message. The message was from XXXX XXXX. She let me know Im delinquent in the amount of {$560.00} on 2 loans. She said I have until Friday to clear the account, or it will be charged off to collections. 

There are a number issues here : 1. I have 3 loans. They have only fixed 2 and fixed is not the correct term. 
XXXX. The supervisor on Wednesday confirmed I would just need to make the payment for the uncapitalized interest ( {$220.00} ) not all of the payments since XX/XX/XXXX that Navient hadnt taken out due to their error putting my account in deferment. 
XXXX. I again was never provided any notice that I owed any money at this time. On Friday, XX/XX/XXXX I received a statement in my Navient inbox. However, that statement again shows I do not owe any money. Although that may have occurred prior to fixing the account I still have not received any communication from Navient other than a phone call threatening me with default in less than 5 days that there has been any changes to my account. 
XXXX. Navient is calling my account delinquent when I have not had any payments owed to them for 9 months. When I spoke to the supervisor, I did not ask for my deferment to be reversed through XX/XX/XXXX. I asked for it to be terminated effective XX/XX/XXXX. I am now again being penalized for Navients errors and deceptive practices. My account was in deferment status until sometime between Thursday and today ( Monday ). They are now also telling me they will be reporting this to the credit bureaus as delinquent. This is COMPLETELY unacceptable and false information. 

This entire situation stems from Navients actions violating the information they are providing to borrowers. Nothing on their website says my loan should have gone into deferment. When I notified them of this, instead of fixing the error by updating my status to remove the deferment effective immediately, uncapitalize the interest, and credit the interest accrued while that {$220.00} was capitalized, Navient instead back dated my repayment status to XXXX, called me delinquent on my loan, threatened default, required on 9 months of payments for 2 loans, and still left one loan in an in-school deferment. 

When I spoke to XXXX XXXX today, she said a supervisor will call me tomorrow. I then made the {$560.00} and she said they will for sure call me now by Saturday. Honestly, I believe a larger party needs to be involved. Nothing Navient has done to rectify this situation is appropriate. I have been penalized by their deceptive practices and now by their efforts to fix that. 

What I want from the situation : 1. My third loan that is still screwed up to be put into repayment with an effective date matching the day they do it. 
2. My two loans that are currently being called delinquent to be fixed to show they were in deferment until Friday XX/XX/XXXX ( as that is the best guess I have as to when they fixed the status ). 
XXXX. My credit report will not be affected. If Navient has already reported me delinquent. They will fix it immediately to show no payments were owed. My cosigners credit report should also be updated if affected. 
XXXX. I will be credited any amount of interest that was accrued on the {$220.00} since XX/XX/XXXX. 
XXXX. I will be notified by email and phone by an advanced Navient member when this is fixed. 
XXXX. Navient will either stop automatically putting private loans in an in-school deferment to match what their website states or will update their website.

Company response to consumer: Closed with non-monetary relief