Art Institute of CA Navient Private Loan in Default

Introduce yourself
#1

Hi Everyone,
So glad to have found this union after reading a news article during first few days of going into default with Navient for private student loans from Art Institute. Today is Day 7 of official default. Totaling $174,000 (mostly interest). I attended Art Institutes of CA from 2005 to 2009. I used every in school deferment and forbearance option possible and now after 13 years, have run out of options. Navient said I have no more in school deferment avail (went to community college part time for a long time to keep in deferment while working in hopes something would change).

Have spoken with a few attorneys and seems a way out but first will have to go into default. I have federal loans but least of my worries as I still take part time college classes to keep in deferment.

There has to be a way out of this. I also did not get the degree went to Art Institutes for because in my last semester there I did not have enough to pay a $3,000 balance. Still remember day I signed up and how private loans given out so freely.

#2

Dear CuriousLady,

I am currently in default with Navient for private AI of Portland (OR) loans I cosigned for my son, who was not able to graduate from AI due to issues I’m sure you’re familiar with (previous credits not transferred, bogus classes required, etc.). The debt is over $100,000. I’ve also spoken with attorneys, and default seems the only solution. I’m retired and don’t have any assets to speak of, which probably helps. Theoretically, Navient will settle for a lesser sum at some point, though my instinct is to pay nothing for the fraudulent institution that is AI. I’m replying to your message in solidarity rather than with any advice you haven’t received already. Maybe if there’s enough of us eventually, the AI debt will be wiped out for everyone, as has happened with some other private, for-profit schools. Like you, I’m speaking of private, not Federal, loans. Time to address this issue!

Nina

#3

Nina,
Thank you so much for your supportive words and personal story. I wonder how many more us with AI private loans from Navient on the Debt Collective?

Currently using this time to read one their books available from my public library and sort out what can be done.

Sincerely,
Lena Luna