Consumer complaint received 2025-01-09 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: IL

Complaint narrative:
We have a " private '' student loan with orinally " XXXX XXXX '', then moved to " Navient '' and now serviced by " XXXX ''. All loan servicers used by the government. The loan was for my wife XXXX XXXX XXXX ), and her degree at what was originally the XXXX XXXX XXXX XXXX, and ultimately, as she took time away to have children, the XXXX XXXX XXXX XXXX. The XXXX XXXX XXXX XXXX is no closed and spent most of the last XXXX years in litigation for fraudulent practices. XXXX of the judgements they lost ( XXXX XXXXXXXX ) was with Navient. Yesterday, XX/XX/XXXX, we received a letter from the Department of Education that all government loans for this institution are being cancelled, and all past payment being refunded : See actual email at the bottom this summary. The reason for the government ruling : XXXX XXXX XXXX during the period of XX/XX/XXXX through XX/XX/XXXX would be discharged because XXXX concluded that your school made pervasive and widespread substantial misrepresentations which borrowers relied on to their detriment, and/or violated state consumer protection laws. 

Our loan was " privately '' funded by Navient, through the government. Since it's private, we don't qualify for discharge and refund. Yet, the fraud is clearly concluded here. 

I've called the Department of Education, Studentaid.gov, XXXX. All say that we don't qualify. I understand the government can not discharge a loan they don't have. My issue is we are just as victimized by the school and have paid Navient {$29000.00} over the last 5 years, and still owe {$30000.00} more. This is fraud. We have the same consumer rights as every other American. I can't sue the school, they're defunct now. I can't sue our " private '' bank because there isn't on... it's Navient. It's a literal fact they defrauded their students. I want the same protection and rights. 

XX/XX/XXXX Borrower Defense Group Discharge Case : XXXX Dear XXXX XXXX : Subject : Confirming your student loan discharge. 

The U.S. Department of Education ( ED ) is writing to provide an update on our prior determination that some or all of your federal student loans should be discharged based on misconduct by your school. We previously notified you that the federal student loans you received to attend The XXXX XXXX during the period of XX/XX/XXXX through XX/XX/XXXX would be discharged because ED concluded that your school made pervasive and widespread substantial misrepresentations which borrowers relied on to their detriment, and/or violated state consumer protection laws. 

We are confirming that if your discharge is still incomplete you do not have to make any more payments on the loan ( XXXX ) that we are in the process of discharging. We will discharge the full remaining balance of your eligible loans and refund all payments you previously made to ED on these loans. 

Please note : We are sending this message to all borrowers with approved discharges based upon misconduct by their school. If your discharge is complete, you may disregard this notice.

ED takes the following steps on the loans approved for this relief : Discharge the entire remaining balance of the loans. This includes principal and outstanding interest. If you consolidated your loans, we will only discharge the portion of those loans that you took out to attend the school during the time period identified above. 
Remove the loans from your credit report if they are fully discharged.

Refund any payments previously made to ED on the loans being discharged. 
Until ED completes this work, your eligible loansincluding any Federal consolidation loan ( s ) that repaid those eligible loanswill remain paused in forbearance or stopped collections unless you have opted out of forbearance or stopped collections, and you will not be asked to resume making payments. If you have loans in default, we will not attempt to collect on the loan ( s ) being discharged through this action.

EDs prior determination was that the loans described above are not enforceable and that you are no longer obligated to repay them. As a result, ED will not seek to enforce them, and any future attempts to collect on or enforce your repayment obligations are without legal basis. Furthermore, because the loans described above and your repayment obligations are not enforceable, you are entitled to, and will receive, a discharge. This restates the final determination ED communicated in our prior notice.

ED recommends that you retain a copy of this letter for your records if your relief is not yet complete.Your Borrower Defense Group Discharge case number is XXXX. You may reference this number if you contact our call center with questions about your discharge. If you already applied for a borrower defense discharge, this case number may be different than your borrower defense application number.

Although your servicer has been instructed that the loan ( s ) that is ( are ) the subject of this notice should not be put into repayment ( unless you have opted out of forbearance or stopped collections ), sometimes loans that ED has agreed will be discharged are erroneously returned to repayment status. In those circumstances, providing a copy of this letter to your servicer could aid you in resolving any dispute about repayment.

Please continue to check your online account with your loan servicer to ensure your address is correct so you can receive any refund. Otherwise, you do not have to take any further action to receive your discharge. If you have questions, please contact your servicer. Dont know who your loan servicer is? Log in to your StudentAid.gov account, navigate to the My Aid page, and select View loan servicer details. You also can call us at XXXX and we will connect you with your servicer. 

Please note : This letter does not apply to any private student loans you may have. Also, this letter only applies to eligible loan ( XXXX ) you borrowed to fund The XXXX XXXX enrollment during the timeframe mentioned above ; it does not apply to any loans you may have borrowed to attend any other school, and it does not apply to any loans you may have borrowed to fund a separate XXXX XXXX XXXX enrollment outside the timeframe mentioned above.

Company response to consumer: Closed with explanation