Product: Student loan

Subject : Formal Complaint Regarding Wrongful Interest Accrual on Student Loan under the SAVE Plan I am filing a formal complaint regarding wrongful and improper interest accrual on my student loan account, which is serviced by Aidvantage, while I have been enrolled in the Saving on a Valuable Education ( SAVE ) Plan. This complaint pertains to a charge of {$30.00} in interest that was wrongfully applied to my account, despite the provisions of the SAVE Plan, which clearly state that interest should not accrue during this period of {$0.00} payments.

Summary of the Complaint : 1. Interest Accrued Despite Eligibility for {$0.00} Payments On XX/XX/XXXX, I discovered that {$30.00} in interest had been charged to my account. As per the terms of the SAVE Plan, I am eligible for XXXX XXXX monthly payments due to my income. The SAVE Plan explicitly guarantees that borrowers will not accrue interest while making {$0.00} payments. This is a key provision of the plan, which is meant to prevent the accumulation of unnecessary debt for borrowers. Therefore, the interest accrual on my account is a clear violation of the terms outlined in the SAVE Plan and federal guidelines governing student loans. 


2. Misleading and Inadequate Response from Aidvantage Shortly after discovering the erroneous interest charge, I contacted Aidvantage, my loan servicer. I spoke with a representative who assured me that the interest would be removed from my account. However, despite this assurance, the {$30.00} in interest has not been removed. I also spoke with a supervisor in XX/XX/XXXX, who was unable to explain the source of the interest charge. The supervisor acknowledged the issue but could not provide a reasonable or reliable explanation for why the charge was applied. Furthermore, the supervisor promised to follow up with additional information but never called back, leaving me without any resolution. 


XXXX. Press Release by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  In response to the XXXX XXXX XXXX XXXX XXXX siding in favor of a lawsuit led by XXXX attorney general and five other Republican-led states, which argued the Department of Education lacks the authority to carry out the SAVE program, Education Secretary XXXX XXXX XXXX XXXX a press release on XX/XX/XXXX that, " The XXXX XXXX borrowers enrolled in the SAVE plan will be placed in an interest-free forbearance. '' This statement confirms that borrowers in the SAVE Plan were not supposed to have any interest accrue during this period. Therefore, the interest charge applied to my account violates both the intent and provisions of the SAVE Plan.

4. Violation of the SAVE Plans Interest Waiver Provisions The SAVE Plan explicitly states that borrowers making {$0.00} payments will not have interest accrue on their loans. Furthermore, the U.S. Department of Education, along with XXXX XXXX XXXX, confirmed that no interest should be accruing during this period for borrowers enrolled in the program. This was further reinforced by a temporary interest-free forbearance granted to all eligible borrowers during the XXXX period. Despite these protections, interest was still erroneously applied to my account, which directly contradicts the terms of the program. 


5. Federal Protections and Legal Violations Aidvantages actions may be in violation of several federal laws and regulations, including : The Higher Education Act of XXXX : This law governs federal student loans and outlines the rights of borrowers, including protections against wrongful interest accrual. 

The Fair Debt Collection Practices Act ( FDCPA ) : This act prohibits unfair practices related to debt collection, including the improper charging of interest.

The Truth in Lending Act ( TILA ) : This act mandates accurate and transparent disclosure of loan terms and conditions, including the proper application of interest rates.

The wrongful application of interest and failure to provide proper documentation regarding the charges is a violation of my rights as a borrower and constitutes improper loan servicing practices. 


XXXX. Lack of Transparency and Accountability To date, Aidvantage has failed to provide adequate documentation or a clear explanation for the interest charge. When I requested clarification, they could not provide reliable information or a satisfactory resolution. Their failure to follow up on the promised call-back has left me in a state of uncertainty and concern regarding the accuracy of my loan servicing. This lack of transparency is not only frustrating but also indicative of improper bookkeeping and potentially unlawful practices.

Requested Resolution : 1. Immediate Refund of the {$30.00} in Interest : Refund the amount of {$30.00} that was incorrectly charged to my account, as the SAVE Plan explicitly states that interest should not have accrued. 


XXXX XXXX of XXXX XXXX from XXXX XXXX : XXXX a thorough review of my loan account from XXXX to XX/XX/XXXX to ensure that no additional improper interest has been charged. If further interest charges are identified, I request that they be refunded promptly.

3. Refund of Any Payments Made Toward Improper Interest : Any payments I have made towards the erroneously applied interest, I request that these funds be refunded in full.

4. Written Explanation of Interest Charges : Provide a detailed, written explanation outlining the origin of the interest charges, specifically addressing the {$30.00} that was applied while I was enrolled in the SAVE Plan. 


XXXX. Confirmation of Corrective Actions : Ensure that Aidvantage takes corrective actions to prevent the reoccurrence of this issue for other borrowers and provides me with a formal assurance that this matter has been rectified on my account. 



Conclusion : I believe that the actions taken by Aidvantage are in direct violation of federal regulations, the SAVE Plans provisions, and my rights as a borrower. I respectfully request that the Consumer Financial Protection Bureau ( CFPB ) take immediate action to resolve this issue and ensure that I am refunded the incorrect interest charges and that my loan balance is corrected. 

Additionally, if this matter is not resolved within a reasonable timeframe, I will be pursuing legal action and exploring other avenues to hold Aidvantage accountable for their failure to comply with federal student loan policies and the rights of borrowers like myself. 

Please let me know if any additional information or documentation is required to support this complaint. 

Thank you for your prompt attention to this matter. I look forward to your response.