Consumer complaint received 2024-06-08 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Navient Solutions, LLC.
State: TN

Complaint narrative:
Many students, including myself, were misled by Navient, formerly Sallie Mae, into securing predatory private loans to fund education at for-profit online institutions, such as XXXX XXXX XXXX I attended from XXXX to XXXX with an original principal loan amount of {$25000.00}. Despite having paid {$84000.00} towards this loans, my current balance stands at {$13000.00} due to an exorbitant interest rate, which currently is 16 %. 

Notably, XXXX XXXX XXXX  was subject to investigations by various state attorneys general and found to have engaged in deceptive practices. In response to widespread allegations of fraud and misconduct by XXXX XXXXXXXX and their predatory lending practices with Sallie Mae. One of my loans was part of this lawsuit, while the other was not due to having a co-signer, which Navient just released and removed from the loan. The AG lawsuit led to one of my loans, from XXXX XXXXXXXX and for the same Associates degree as the remains loan left, with over {$80000.00} discharged.

Navient, which was sued by the attorneys general of 39 states for its role in facilitating these predatory loans, had a specific arrangement with for-profit schools during the XXXX XXXX, making it a " preferred '' lender. Despite this, the settlement terms provided by Navient were considerably inadequate, excluding many borrowers who took loans for attendance at approximately 150 for-profit online schools, unless they resided in certain states or had not defaulted for at least seven months during a specified period. This loan was in forbearance for many months following the years of graduating. 

The only period during which I managed to reduce the principal amount was during the pandemic, when interest rates were temporarily lowered to between 0.5 % and 1 %. However, once the regular interest rates resumed, my balance skyrocketed again. This financial strain, coupled with the emotional stress and damage to personal relationships, has been overwhelming. 

Moreover, Navient exited the federal student loan servicing business amidst legislative and advocacy scrutiny, following allegations of steering borrowers away from income-driven repayment plans towards forbearance, an action for which they had to provide restitution. 

Navient has also faced multiple lawsuits for other predatory lending and illegal collection practices. Currently, Navient is distributing " applications '' to select students who may qualify for Borrower Defense claims against their schools. However, this process feels unnecessary and opaque, as Navient is already aware of the affected students. 

Under the FTC 's " Holder Rule, '' Navient is accountable for these predatory loans issued in association with for-profit online schools. As time is critical, XXXX XXXX XXXX has urged Navients CEO to immediately discharge these loans. It is crucial for Navient to take responsible action now by discharging all s

Company response to consumer: Closed with explanation