Consumer complaint received 2023-10-30
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account information incorrect
Company: Maximus Federal Services, Inc. (TX)

In XXXX I applied for the student loan Borrower Defense to repayment. This year, XX/XX/XXXX I received a letter from the XXXX Department of Education stating that my loan application for the Borrower Defense was approved and that my loans would be discharged and balances updated with the three major credit bureaus so that the tradelines would be deleted. When I originally spoke to someone with the Department of Education. I was told that it could take up to XXXX months. Between XXXX XXXX XXXX XXXX I spoke with agents for the loan servicer, Aidvantage, who told me that my case was being worked on and that I my accounts would be discharge by XXXX. Also, representatives with the Department of Education told me on several phone calls that if my account was not XXXX by the end of XXXX then my payments would be put into a deferment or forbearance and I would not see an interest accrual on the front end and that no payments would be due. I don't know exactly what " front-end '' meant, but that is what I was told. Furthermore on the Department of Education XXXX website it plainly and clearly states that federal subsized loans that have been put into deferment will not accrue interest. 
By the end of XXXX, According to the credit bureaus Aidvantage XXXX XXXX XXXX XXXX my loan accounts on XX/XX/XXXX. Interest was charged and of course the balance increased on all XXXX student loans increased. This is negatively impacting my XXXX XXXX. The increase in the loan balances caused by XXXX XXXX to decrease and the existing of the loan balances and tradelines themselves continues to negatively impact my debt to income ratio and ability to obtain credit. This will continue until to cause me hardship because we have been told not to pay on the loans since they are awaiting discharge. Since XX/XX/XXXX, the credit bureaus updated each loan amount and list each loan as being in deferment. 

I have tried several times to reach out to Aidvantage and since the summer they have long wait times. I was waiting for over XXXX hours that last time I called. The customer service advocate at Aidvantage who is assigned to my case responds with very vague answers. She never answers the questions that I ask in my emails sent to her. This what I received today on XX/XX/XXXX. Neither the Aidvantage nor the XXXX. of XXXX. sent me a letter or email prior to XX/XX/XXXX, before updating my accounts and the added interest to my loans explaining the forbearance or deferment and how it would affect my credit. 

an email reply from XX/XX/XXXX after I sent her an email. 
[ " Dear XXXX XXXX : This letter is in response to the recent inquiry you sent to us regarding your student loan account. 
Your XXXX XXXX to XXXX XXXX is processing. XXXX timeframes have been adjusted and at this time we do not have a set completion date for the processing on your account. Based on Federal Student Aid ( FSA ) Guidance an Administrative Forbearance has been placed on your loans until processing is completed. 
Interest will accrue on U.S. Department of Education ( ED ) owned student loans daily. 
The only period in which interest was waived was XX/XX/XXXX until XX/XX/XXXX as a result of the XXXX XXXX and its extensions. Interest accrual is valid and will continue until your discharge processing is complete. 
We thank you for your patience and understanding in these changing circumstances. 
You are welcome to call me at XXXX XXXX with any questions you XXXX have. 
Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX