Consumer complaint received 2025-08-02 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: Navient Solutions, LLC.
State: VA

Complaint narrative:
From XXXX through XX/XX/XXXX, Navient Corporation engaged in a pattern of abusive loan servicing practices on my private student loan, particularly through excessive and inappropriate use of forbearance. These actions appear to violate the terms of the CFPBs XX/XX/XXXX settlement with Navient and have caused me substantial financial and emotional harm. 

Loan Details ( as of XX/XX/XXXX ) : Original Principal ( XXXX ) : {$20000.00} Current Balance : {$52000.00} Unpaid Interest : {$99.00} Total Accrued Interest ( Life of Loan ) : {$72000.00} Current Interest Rate : 14.000 % ( Variable ) ( noncompetitive and predatory for a private loan ) Loan Type : Private Loan Owner : Navient Private Loan Trust Cosigner : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX Repayment Start Date : XX/XX/XXXX Estimated Payoff Date : XXXX/XXXX/XXXX Servicing Misconduct : XXXX. Forbearance Steering ( XXXX ) : Navient placed my loan into forbearance over XXXX times, using short-term pauses instead of providing affordable, long-term solutions. Each time, interest was capitalizedsignificantly increasing my balance. 

Examples from my account include : XX/XX/XXXX : {$710.00} capitalized interest XX/XX/XXXX : {$820.00} capitalized interest XX/XX/XXXX : {$530.00} capitalized quarterly XX/XX/XXXX : {$750.00} capitalized quarterly This pattern shows a systemic abuse of forbearance over XXXX years. 

XXXX. Failure to Offer Alternative Repayment Plans : Navient never offered an income-driven repayment ( IDR ) or any income-sensitive option. They continued placing the loan into forbearanceeven during financial hardshipdespite CFPB expectations for borrower support. 

XXXX. Improper Transfer to XXXX : In XX/XX/XXXX, Navient transferred my loan to XXXX with no resolution of the inflated balance or servicing errors. The balance remained over {$52000.00} with a XXXX XXXX interest rate and payments around $ XXXX. 

Resulting Financial Harm : Excessive Loan Balance Growth : Despite years of payments, my student loan balance ballooned from {$20000.00} to over {$52000.00} due to repeated forbearance use and interest capitalization by Navient. This growth was not based on borrowing more but on servicing practices that repeatedly added interest to the principal. 

Severe Credit Score Decline : My credit score dropped by more than XXXX points, largely because of the growing student loan balance and its impact on my debt-to-income ( DTI ) ratio. This credit damage has followed me for years and affected nearly every financial decision Ive had to make. 

Unfavorable Mortgage Terms and Housing Instability : I was eventually able to purchase a home, but the high DTI and low credit score meant I could only qualify for a high-interest mortgage. This led to higher monthly payments, and I was pushed into pre-foreclosure on XXXX separate occasions due to financial strainboth of which were preventable had my student loan been serviced properly. 

High-Interest Consumer Credit : Because of my credit profile, Ive only been able to access subprime credit cards with high APRs, leading to greater debt costs even for basic living expenses.

Barriers to Better Financial Opportunities : My low credit score and high student loan balance have : Prevented me from refinancing other debts Limited my ability to obtain business or personal loans Increased my insurance premiums in some cases Possibly affected my eligibility for housing or employment background checks Estimated Financial Impact : Between higher mortgage and credit costs, missed financial opportunities, and loan mismanagement, I estimate over {$150000.00} in economic losses. 

Emotional and Psychological Harm : Ive lived with XXXX years of chronic financial stress caused by this loannot because of irresponsible borrowing, but because of repeated servicing failures. The emotional toll includes anxiety, instability, and a sense of being trapped in a debt cycle I could not escape. 

Possible Additional Harm : I also believe there may be other violations or consequences Im not fully aware of yet, including reporting errors, mishandled benefits, or lost borrower rights. I request that a full investigation explore these areas as well.

Company response to consumer: Closed with explanation