Quick Answer: This Navient loan credit letter appears to be a scam, as legitimate federal student loans don’t offer 99.999% principal forgiveness for making 12 on-time payments. Consumers should verify any loan correspondence directly with Navient and report suspicious communications to authorities.
Okay, this one has me stumped. A consumer received a letter that said:
“your loan credit has been retracted because you didn’t make your first 12 Monthly Payments on time.
When the loans listed below were disbursed, you were awarded the opportunity to receive a 99.999 percent loan credit. This credit was based on the Original Principal loan balances, minus cancellations, refunds, and returned disbursements. In order to earn the credit you would have needed to make your first 12 Monthly Payments by their due dates as initially scheduled in the original repayment disclosure statement. Unfortunately, because you didn’t meet this requirement, the credit has been added back to your principal balance, increasing the amount you must repay.”
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
In the latest issue (Oct 6): When fear picks your debt plan
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The loan date was five years ago.
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