I took out fed loans around same time. I’ve paid $180k on &50k loans insolvency dated in 1999 and still owe $60k. Ive gone through legal documents and see they said they consolidated two loans they didn’t which was just one problem. Honestly the numbers above are astonishing and not sure who in their their right mind would have agreed to such a loan. It’s not possible even at 8.125% interest. This is after paying payments of $900-$1000 per month. It’s crazy. There are clear issues and. I’m working on documentating the discrepancies and filing multiple complaints. I’d suggest others dig though loan files and do the same if your numbers seem off too.

Well said Loretta! Borrowers deserve much better than the treatment they currently receive.

Regarding your first question about the line of companies that you keep getting stuck with, borrowers have very little control in this situation. Unfortuantely, student debt sometimes changes hands, servicers change, and borrowers have almost no say in the matter.

Before doing anything, I’d suggest first investigating what type of loans you have. It sounds like you have federal loans, but the loans are not federally held. This article explains the difference between the two. I’d also suggest taking a look at the federal records on the studentaid.gov website to learn more about your loans.

Once you are armed with a bit more knowledge, I’d suggest calling your servicer to discuss your status. Your comment seemed to suggest that you had made some progress towards forgiveness. How far along are you? Are all of the loans in the same status?

Generally speaking, managing federal student loans is a DIY situation unless you need to file bankruptcy. There are exceptions, but most borrowers can get things under control after a few servicer calls and some independant research.

Best of luck to you!

I found out that because Navient owns my loans, I don’t qualify for the CARES ACT benefits regarding student loan payments being on hold and the interest accumulation on hold. Also, I now OWE DOUBLE of what I originally borrowed, due to Interst Capitalization! I had NO IDEA this could be done until now and my principal loan balance has gone from estimate $8250.00 to a whopping $13,214 (it technically states $17,554 was ORIGINALLY awarded, which isn’t the case. Where did an extra $4340.00 come from?) I did not seek out Co-Step or Navient. They came to me. I had no choice in the matter, at least to my knowledge, when this transition occurred. Now, my original debt has BALLOONED to a ridiculous amount (principal) and I honestly find this to be not only a racket, but bad business dealings.

This year marks the 20 year anniversary of when I took out the loans. I am not in default but late on payments. I am considering applying for ICB payments (I work part-time at the moment) yet worried if I begin that, it will tack on more time regarding forgiveness options.

I know I am not the only one in this position. I would appreciate any advice in the matter. I’m seriously considering a consult with an attorney whose specialty is with student loans.

I thank you in advance for your time and consideration.

That sounds devastating. I have a couple of thoughts.

First, sometimes calling back and trying again will lead to a different outcome. Some reps are more helpful than others and sometimes a second or third try gets the results you want.

Second, I’d encourage you to ask them what you can possibly do because you can’t afford payments at that obscene interest rate. Tell them you want to work with them, but what they are asking just isn’t possible. Be sure to take notes and write down their exact response. I’d then take this information, along with a detailed history of all the calls and requests you have made to SM, and file a complaint with the CFPB. Be sure to mention the instructions you were given and how you followed them as you did in your comment. A CFPB complaint may lead to attention from someone at SM who can help.

Lastly, keep up the good work. You are in a tough situation and SM knows that if you give up, and the loan is delinquent for a while, they will make more money. Don’t get discouraged. Stay engaged and keep calling and doing whatever you can to get them to cut you some slack.

Filing a complaint might get your problem solved.

However, if you suspect fraud or think that there is a contractual dispute happening here, it might be a good idea to hire a local a attorney to help you resolve the issue.

One option would be to file a complaint with the Consumer Financial Protection Bureau. The vast majority of the time the company you complain about is forced to respond to your complaint by the CFPB.