Greetings:
This is my first post, though I have been grateful for the knowledge gained through reading community posts. I would be grateful for a response - tried posting this earlier today, but it did not show up on the forum. Administrators, if there is a problem, please let me know and I will modify it as needed - could really use some advice, though, and I'm new to posting, so some direction and feedback would be appreciated.
My student loan was recently rehabbed after a period of significant medical-related issues. I am thrilled to have turned things around, but dismayed by the failure of Navient to delete the negative entries that correspond with the period during which the loan was under rehab. I understand that the negative entries that led up to me formally entering rehab will NOT be deleted and that they believe they are, in fact, required to include them under federal law. I can live with that, but I am angry by the failure to remove the rehab-related entries. I reached out to CFPB and filed a complaint, believing that it would be resolved in my favor. Instead, I received the below reply to my complaint this morning FROM Navient (the below is not from CFPB):
"Thank you for reaching out to the CFPB with your concerns regarding your student loan account. Navient previously serviced a Federal Consolidation Loan on your behalf. Your account was reported delinquent to the consumer reporting agencies correctly for periods of delinquency prior to your account being transferred as a default (delinquency) claim to your guarantor, Pennsylvania Higher Education Assistance Agency (PHEAA). Your account has been rehabilitated through this agency. This entitles you to have any derogatory marks made by PHEAA removed. However, this agreement does not state that the information reported by the prior servicers will also be removed because PHEAA does not have the authority to remove accurate information reported by the prior lender/servicer. Navient has adjusted the line on your credit report that states government claim to show ‘account transferred to another lender’; this will allow the information to concur with that information reported by PHEAA. The prior delinquency information reported will not be removed as it is accurate and occurred prior to the transfer of your account to the guarantor. Since student loan reporting requirements are different than consumer/personal loans and credit card agencies and can be confusing to the creditors, we would be happy to discuss the reported information with any creditor that you may be working with in the future."
CPFB responded to Navient's reply by letting me know there was a reply and immediately "closing" the complaint, clearly signalling that they believe Navient's actions are OK. What am I missing? During rehab, when I called to find out why the negative Navient marks kept appearing on my credit reports, I was told that they ones that were reported during rehab would continue, but that they would be deleted once rehab was over. The response above from Navient seems to suggest (and it truly reads a bit like Greek to me) that any negative marks by PHEAA that occurred during rehab would be deleted, but Navient is not required to comply. Meanwhile, there were NO negative marks from PHEAA, only Navient. This is deeply confusing and, it seems, misleading. However, clearly CPFB does not think so.
Any collective wisdom would be greatly appreciated. I am feeling extremely disappointed and defeated. I also feel like I want to warn others who may step into my shoes believing, as I did, that all negative marks related to the loan that were posted during rehab would be deleted from the credit bureaus upon successful rehab. While the "account transferred to another lender" is certainly helpful, it doesn't make up for the many, many months of negative marks from Navient during the rehab.
Thanks!
