Consumer complaint received 2024-02-07
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. (MS)

In XXXX I filed a complaint with the dept. of education regarding this issue. 

I made the minimum payment on my subsidized and unsubsidized loans then specified an over payment for the loan with the smaller balance. It automatically changed my overpayment amount to be reapplied to other loan, essentially making it IMPOSSIBLE to pay off that loan early. After DOE got involved, Aidvantage corrected it, I was allowed to specify overpayment amounts correctly for the month of XXXX. 

it has now reverted back to where I can not specify an overpayment amount. I just want to pay my loans off as quickly as possible. Aidvantage does not get to tell me where I'm allocating my debt payments ; what is the poXXXX of allowing me to " specify '' if I can't actually specify an overpayment??? 

I tried calling to make the payment over the phone using the number that is listed on their website. However, their call center just circles you back around every single time. After 5 minutes I finally hit the " question/return call '' option and got thru to an employee named XXXX. 

She told me that I can't pay more on one loan than the other because even thou it is consolidated, and sub and unsub are separate, its actually only one loan. So I asked why it gives me the option to specify and she said that's for unconsolidated loans. When I told her about how it is possible to do that I paid that way in XXXX she put me on a 10min hold then said I can make the overpayment online and let it allocate itself, then call XXXX ( not listed on their website ) to speak to a representative to have them reallocate the funds correctly. I asked her how can I do that if I cant even get thru their call center to speak with someone to make a payment in the first place. She then said she can't do anything their call center must be having issues but that I can leave a voicemail and they'll call me back. I left a voicemail hours ago and have yet to receive a call back. considering no one is answering calls on that line, i highly doubt they will return my call. 

I can not find any statutes or laws that are backing up what Aidvantage is telling me about the overpayment/automatic reallocation despite specifying for each loan amount to be paid. 

Mind you, this is all over an OVERPAYMENT ( ie interfering with the amount of interest that could potentially be made on the balance is only minimum payments are made ). The minimum payments are still being made. 

Even if I had XXXX in the bank I couldn't even pay that loan off if I wanted to because : 1. the website will automatically change my payment to be applied to a totally separate loan ( despite XXXX telling me its one loan, it is listed as two loans on my portal ) ; and 2. I can't get thru to anyone in their payment center to make a payment correctly, per their policy for overpayment specification. 

There is an option to mail payments in the form of a check but I am afraid to do so because i'm concerned it would get " lost '' and not applied to my account at all forcing me to incur additional fees and penalties. 

I just want to be able to pay off my loan. I should not be forced to accrue daily compounding interest on a loan I am actively trying to make overpayments on. This is incredibly predatory of Aidvantage, and by forcing payments this way and refusing to answer phone calls they are ensuring that my loan repayment is drug out as long as possible and that I incur as much interest as possible. 

This is my 3rd complaint regarding this matter. Each time they " fix it '' for a few months then revert back to their predatory practices. This is not fair I'm literally getting punished for doing what I'm supposed to be doing and for trying to pay back a loan as quickly as possible.