Consumer complaint received 2024-07-29
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Maximus Federal Services, Inc. (CA)

I received a letter from XXXX ( my previous loan service ) saying they will transfer my student loan to Aidvantage. Here is what the part of letter said : " The U.S. Department of Education ( ED ) will soon transfer the customer service of your federal student loan account to Aidvantage, another member of ED 's federal loan servicer team. Your loans are not being sold. ED will continue to own your loans ; however, a different servicer will manage your loans and assist you on ED 's behalf. 
ED is transferring your loan account to Aidvantage as part of an initiative to keep customer service and repayment support balanced across all federal loan servicers. This change in servicer will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans. 
Your loan account will be transferred to Aidvantage on or about XX/XX/year> ''. On XXXX 's loan service also saying they won't accept any payment during loan service transfering. I was supposed to pay off {$20000.00} student loan, but I have to hold it until they are done transferring the loan service. 

They didn't mention if the interests are still keep charging during the transfer. So I called XXXX, Federal Student Loan, and Aidvantage. XXXX and Federal Student Loan service said it will keep charging the interests. Then I asked I was going to pay {$20000.00} off to lower the interests, but I was not able to pay to any loan service while the loan was transfering. It's going to keep charge me the same interest, without lower it. Who was going to take responsibility of the interesting being charged while transferring the loan without able to pay off the loan? XXXX and Federal Student Loan pushed the responsibility to each other, so I didn't get any answer. Then I called Aidvantage service. One lady said it will keep charging me interest, but no solution about pause the interest while transferring the loan that takes many days. One said the interest will be paused.

So I was waiting to pay {$20000.00} student loan until XX/XX/year>, but I still didn't get any information for my new account at Aidvantage. I kept calling Aidadvantage service and the answer was that it took about a month to get my new Aidvantage account, and they told me it won't charge me interest while waiting. So I finally got my Aidvantage loan account in XX/XX/year> and paid {$20000.00} right away, the payment is still on processing by today XX/XX/year>. When I checked the loan balance payment statement. I see they charged me interest everyday while waiting for my new Aidvantage loan account. The total interest is XXXX by XX/XX/year> ( the interest is going to be more by today, because they charge me interest every single day ). I feel like to be cheated by the loan services and took advantage of. They delayed the loan transferring process for almost a month which is not my fault, why would I need to keep paying the interesting? This is not fair to me, because I was trying to pay off {$20000.00} while they transferring the loan service.