Consumer complaint received 2022-05-28
Company: Maximus Education, LLC dba Aidvantage
State: CA
Product: Debt collection
Sub-product: Private student loan debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
XXXX XXXX XXXX XXXX XXXX 
Search XXXX  Multi-State Settlement Home Address and XXXX XXXX XXXX XXXX Multi-State Settlement Thank you for visiting the XXXX  Multi-State Settlement informational website. This message was last updated on XX/XX/XXXX. Borrowers do not need to take any action to receive relief under this settlement. On XX/XX/XXXX, the settlement administrator sent a postcard to each federal loan borrower eligible for a restitution payment, using the most current address on file with the U.S. Department of Education. 

Update as of XX/XX/XXXX - Postcard notices were sent to eligible borrowers on XX/XX/XXXX. You may update your address and/or select a payment option by selecting the tab " Address and Payment Verification '' In order to submit a change, you will need the Web Registration Code listed on the front of the postcard you received. 

39 State Attorneys General Announce {$1.00} XXXX Settlement with Student Loan Servicer Navient Settlement includes {$1.00} XXXX in debt cancellation and {$95.00} XXXX in restitution Thursday, XX/XX/XXXX XXXX state Attorneys General announced today that XXXX, known as one of the nations largest student loan servicers, will provide relief totaling {$1.00} XXXX to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans. 

This settlement resolves claims that since XXXX, despite representing that it would help borrowers find the best repayment options for them, XXXX steered struggling student loan borrowers into costly long-term forbearances instead of counseling them about the benefits of more affordable income-driven repayment plans. 

According to the attorneys general, the interest that accrued because of XXXX forbearance steering practices was added to the borrowers loan balances, pushing borrowers further in debt. Had the company instead provided borrowers with the help it promised, income-driven repayment plans could have potentially reduced payments to as low as {$0.00} per month, provided interest subsidies, and/or helped attain forgiveness of any remaining balance after 20-25 years of qualifying payments ( or 10 years for borrowers qualified under the Public Service Loan Forgiveness Program ) . 

XXXX also allegedly originated predatory subprime private loans to students attending for-profit schools and colleges with low graduation rates, even though it knew that a very high percentage of such borrowers would be unable to repay the loans. XXXX allegedly made these risky subprime loans as an inducement to get schools to use XXXX as a preferred lender for highly-profitable federal and prime private loans, without regard for borrowers and their families, many of whom were unknowingly ensnared in debts they could never repay. 
Under the terms of the settlement, XXXX will cancel the remaining balance on {$1.00} XXXX in subprime private student loan balances owed by more than XXXX borrowers nationwide. In addition, XXXX will pay {$140.00} XXXX to the attorneys general. A total of {$95.00} XXXX in restitution payments of about {$260.00} each will be distributed to approximately XXXX federal loan borrowers who were placed in certain types of long-term forbearances. Borrowers who will receive restitution or debt cancellation span all generations : XXXX harmful conduct impacted everyone from students who enrolled in colleges and universities immediately after high school to mid-career students who dropped out after enrolling in a for-profit school in the early to XXXX. 

The settlement includes conduct reforms that require XXXX to explain the benefits of income-driven repayment plans and to offer to estimate income-driven payment amounts before placing borrowers into optional forbearances. Additionally, XXXX must train specialists who will advise distressed borrowers concerning alternative repayment options and counsel public service workers concerning Public Service Loan Forgiveness ( PSLF ) and related programs. The conduct reforms imposed by the settlement include prohibitions on compensating customer service agents in a manner that incentivizes them to minimize time spent counseling borrowers. 

The settlement also requires Navient to notify borrowers about the U.S. Department of Educations recently announced PSLF limited waiver opportunity, which temporarily offers millions of qualifying public service workers the chance to have previously nonqualifying repayment periods counted toward loan forgivenessprovided that they consolidate into the Direct Loan Program and file employment certifications by XX/XX/XXXX. 

As a result of todays settlement, borrowers receiving private loan debt cancellation will receive a notice from XXXX by XX/XX/XXXX, along with refunds of any payments made on the cancelled private loans after XX/XX/XXXX. Federal loan borrowers who are eligible for a restitution payment of approximately {$260.00} will receive a postcard in the mail from the settlement administrator later this spring. 

Federal loan borrowers who qualify for relief under this settlement do not need to take any action except update or create their studentaid.gov account to ensure that the U.S. Department of Education has their current address. 

Until recently, XXXX had a contract to service federal student loans owned by the U.S. Department of Education, including a large portfolio of loans made under the Direct Loan Program and a smaller portfolio of loans made under the Federal Family Education Loan ( FFEL ) program. On XX/XX/XXXX, the U.S. Department of Education announced the transfer of this contract from XXXX to Aidvantage, a division of Maximus Federal Services , Inc. However, XXXX will continue to service federal student loans made under the XXXX XXXX that are owned by private lenders, as well as non-federal private student loans. 

The settlement was led by Pennsylvania, Washington, Illinois, Massachusetts, and California, and was joined by attorneys general in Arizona, Arkansas, Colorado, Connecticut, the District of Columbia, Delaware, Florida, Georgia, Hawaii, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Vermont, and Wisconsin. 


XXXX. What is XXXX? 

XXXX. What is this settlement about? 

XXXX. What relief does the settlement provide? 

XXXX Who is eligible for restitution relating to federal loan forbearance steering? 

XXXX. My federal loan is being transferred to Aidvantage. Does this mean I'm not eligible for restitution relating to federal loan forbearance steering? 

XXXX Who is eligible for private loan debt cancellation? 

XXXX. Do I need to do anything to qualify for settlement relief? 

XXXX. What types of conduct reforms is XXXX required to make? 

XXXX. Where can I go for updates or new information about the settlement? 

XXXX. How can I identify my student loan servicer? 

XXXX. I am having problems with XXXX or another student loan servicer. Where can I get help or file a complaint? 

XXXX. Can I still sue XXXX if I get relief under this settlement? 

XXXX. Can my state Attorney Generals Office give me advice about whether I have a legal claim against my loan servicer? 

XXXX. Ive heard of Public Service Loan Forgiveness ( PSLF ). How can I find out if I qualify? 

XXXX. I cant afford my student loan payments. What resources are available? 

XXXX. My school misled me or engaged in other misconduct. How do I apply for cancellation of my associated federal loans? 

XXXX. My federal loan is being transferred from XXXX to Aidvantage. How do I reach Aidvantage or log in to my new account? 

XXXX. What steps do I need to take to prepare for my federal loan payments to resume? 

Download XXXX XXXX XXXX XXXX is free and is required to view and print documents on this site. 

This site is hosted and maintained by the settlement administrator. 

Last Updated : XX/XX/XXXX Copyright XXXX by XXXX XXXX XXXX

Company response to consumer: Closed with explanation