Student loan refinance issue.. do I have any recourse?

[SeductivePig]

Basically I've had a student loan with Navient for the past 6 years, always made my payments. The loan is now around $90k. Payments are due on the 28th of each month.

I just refinanced at a lower interest rate with a credit union. The credit union supposedly sent an electronic funds transfer to Navient on 9/21 to pay off the $90k. My first payment with the credit union is due on 10/21 and includes interest accrued from 9/21 to 10/21.

Note, I have already made a payment to Navient on 9/28, which includes 7 days of interest I do not owe.

Now, Navient is claiming they never received the electronic funds transfer. My credit union is saying they sent it. Now they're saying it could take up to 30-45 days for Navient to process the transfer. I have no idea who to believe.

On one hand, navient has no incentive to process the check quickly because they lose interest - on the other hand, my credit union has no incentive to make sure the check is cashed quickly because I have already signed the documents with them and entered into an agreement.

As of today, I have nearly $180k of student loans when that number should be $90k. Do I have to go through the legal process at this point? Am I responsible for paying interest to both Navient and the credit union while the payoff takes place over 30-45 days?

 

[zinfamous]

I think this happens every single time. AFAIK, you aren't responsible for those missing funds and you aren't responsible for the ghost interest on funds that you don't owe. You entered into a contract with the CU and it is their responsibility to transfer the debt--otherwise, you owe them nothing, right? If they don't have a record of money being deposited, then you owe them nothing.

You need to spend time with the Credit Union and have them provide details on their action to fix this with Navient, and they are the only ones that should be doing the work. They would know whether their cheque has been cashed, no?

 

[dud]

After perusing the forums the most obvious answer is to contact this user:

https://forums.anandtech.com/threads/vacation-home-or-exotic-car.2521490/


He might be able to help ...

 

[SeductivePig]

I think this happens every single time. AFAIK, you aren't responsible for those missing funds and you aren't responsible for the ghost interest on funds that you don't owe. You entered into a contract with the CU and it is their responsibility to transfer the debt--otherwise, you owe them nothing, right? If they don't have a record of money being deposited, then you owe them nothing.

You need to spend time with the Credit Union and have them provide details on their action to fix this with Navient, and they are the only ones that should be doing the work. They would know whether their cheque has been cashed, no?

This is exactly what I thought.. I shouldn't be responsible for confirming with Navient that the wire transfer was processed.

The credit union said I have to deal with Navient to figure it out because the credit union has record of the wire transfer being sent and received..

I have spent probably four hours on the phone today trying to resolve this BS.

At any rate, I just filed a complaint to the BBB against the credit union. As much as I hate navient, I can't really say it's their fault - if they don't have record of any funds being received, then there's nothing they can do. It's in the credit union's interest/responsibility to get that resolved and they're not doing that .

 

[sactoking]

I'm having a similar problem at work, we wrote a check and the recipient is saying their bank told them it bounced. Our bank insists it was cleared and paid. We're taking the opposite tactic you are; our bank says it was paid fine, take it up with their bank.

If the credit union says the money was sent then it's Navient's issue to find out what happened to it.

 

[SeductivePig]

I'm having a similar problem at work, we wrote a check and the recipient is saying their bank told them it bounced. Our bank insists it was cleared and paid. We're taking the opposite tactic you are; our bank says it was paid fine, take it up with their bank.

If the credit union says the money was sent then it's Navient's issue to find out what happened to it.

Oh man.. I hope it's not on Navient to take care of this. As far as they're concerned, I am still in an agreement with them to make payments so if they don't put in any effort to find the payment, they still get paid by me.. and I can't ignore the payments otherwise interest will tack on..

They even said that they never make outbound calls, so they can't call my credit union to resolve this.

 

[sactoking]

We had our bank put it in writing on letterhead. With that either our bank is wrong but we've relied on their official statement or the other bank is wrong and we've given them official notice. In either case we aren't on the hook.

 

[SeductivePig]

We had our bank put it in writing on letterhead. With that either our bank is wrong but we've relied on their official statement or the other bank is wrong and we've given them official notice. In either case we aren't on the hook.

Rereading this I kind of see a way out - I would have to tell Navient that since my credit union has proof the check has cleared, the burden is on them to find it, otherwise they will be on the hook for all the accrued interest.

 

[BoomerD]

Nah, you're just screwed...they'll be coming to repossess your education any day...

 

[Red Squirrel]

Holy crap 90k. That's a ridiculous amount of student debt. I hope you're a brain surgeon or something. I guess I kind of got lucky myself though, I just stayed home for college so my only cost was tuition and books. My summer job would cover that.

 

[Darwin333]

The CU should be able to provide you with absolute proof that the funds were transferred, I'd send that via certified mail to Navient and tell them to pound sand. If your CU can't provide that proof then something shady is going on imho.