Consumer complaint received 2023-12-12
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: Maximus Federal Services, Inc. (NY)

I'll preface this by saying that I understand the enormity of the backlog that the servicers are dealing with is at least part of the problem I'm facing. But not all of it. 

I submitted an application for direct loan consolidation ( via studentaid.gov ) on XX/XX/XXXX. My wife did the same two days earlier an her consolidation was done by the end of XXXX. Mine remains in progress over 60 days later. Again, I understand the backlog. 

But. 

Something's gone awry between the servicer I chose for consolidation ( Aidvantage ) and the servicers who hold my FFEL loans ( Navient, XXXX, XXXX, and XXXX XXXX ). I've contacted everyone involved multiple times, and at this point, it seems like my main problem may be with Aidvantage, but most of the other servicers have been less than helpful or transparent. 

Navient was the only servicer to acknowledge that the loan consolidation was in process and put me on forbearance until XX/XX/XXXXXXXX  ( at which point I'll owe a massive payment that should otherwise have been consolidated by now ). XXXX and XXXX put me on forbearance without explanation ( I assume due to the consolidation ), but only for 60 days. That ended on XX/XX/XXXX. XXXX refuses to extend forbearance, but XXXX gave me a three-month forbearance. I just submitted a forbearance request with XXXX XXXX. So, Navient and XXXX, and XXXX come out of this looking relatively helpful and understanding. 

The meat of the problem. I contacted Aidvantage on XX/XX/XXXX and the rep was super helpful and expressed confusion and dismay over the fact that none of my servicers had submitted the payoff information necessary to get the consolidation moving. She issued an alert to all of the servicers ( save XXXX who I was told I had to contact for this - XXXX  says no, Aidvantage has to request the info, so ... .I don't know what to do there ) to send the information. 

I spent several days ( taking time off from work ) to contact each of the servicers, and things got even murkier : Navient reported that they sent the payoff info in XXXX, XXXX in XXXX as well, XXXX in early XXXX, and XXXX in XXXX. None of them had received the second request alert issued on XXXX at the time I spoke with them. I'm taking another day off this Friday to follow up with them. 

I called Aidvantage to inform them of this new information, and that rep was far less helpful than the first. She just kept saying that they didn't have the information, confirmed they had sent an alert, and still hadn't received anything. She repeatedly stated that " this takes time, '' but ignored my point that the only reason that it's taking this long is because they don't know what they did with my payoff information - she simply wouldn't acknowledge that problem was at the heart of the matter. I was just told to be patient. 

I filed a complaint regarding all involved with studentaid.gov, but haven't received any response as yet. 

I've been very patient and I'm at the end of my rope because I have no idea where I stand, we've got to consolidate by XX/XX/XXXX, I've got loans that I had to put into forbearance ( accruing interest! ) that would've otherwise been in administrative forbearance if the consolidation process was moving along, and XXXX requires payment this week - the same time that I start paying on private loans. 

I'm not sure what the problem is - Aidvantage incompetence? The other servicers are lying about sending the info? But I'm at all of their mercy and can't get a straight answer as to what's going on.