Student loan servicers work for the Federal government not you! The CFPB receives numerous complaints about them not applying payments correctly. Well, you spoke and we listened by introducing our new MyFit Student Loan Tracking Service. One of our Member's story of dealing with Navient highlights the need for this service. Below is the email we received from Taylor F:
"I've now been paying on my student loans for 2 months and just realized that my standard payments AND my extra payments have all gone towards interest, none towards principle. Despite paying $2,700 so far and expecting to have about 2k of that towards principle according to online calculators, I have actually only made a $600 dent in my loans due to their unethical allocation of payments. This is all despite me sending them a letter from the template I got from you specifically describing how to allocate extra payments. I realize that even the standard payment allocation is purposely unethical and makes it impossible for me to pay off the loans, hence the class action lawsuit that is underway. I don't want to keep making payments and just hope I am reimbursed for my wrongs. I want to leave Navient immediately for a private loan with a lower interest rate."
What Taylor experienced is not a "one-off" experience that student loan borrowers but it a major issue. Just these two months alone of payments being applied wrong would have costs Taylor $800 in additional interest. Just imagine if he did not realize his payments were not being applied right and kept on doing the same thing month after month....It would cost $10,000s in extra interest having been paid.
Not only did Navient not apply the payments correctly, they had put the loans into forbearance for no reason without notifying Taylor. If he had tried to refinance his loans he would have been declined!
This is just one example we see on a daily basis which is why we developed are tracking service. Now we can help you develop your repayment strategy and track it to make sure it is implemented correctly by you and YOUR LOAN SERVICER.
Get more info and sign-up today: