Consumer complaint received 2024-01-27
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. (MN)

I am a full-time, XXXX XXXX at the University of Minnesota -- XXXX XXXX . My loan servicer ( Aidvantage ) can not seem to place my XXXX loans in in-school deferment. Even though I was told by the US Department of Education, the University of Minnesota, and my loan servicer that this notification would occur automatically through a national clearing house, it has not. I first submitted documentation of my student status to Aidvantage on or around XX/XX/XXXX ( the University of Minnesota had faxed separate documentation around two weeks prior to this ). Nothing was updated and the website said I owed a full payment of {$890.00} that month. I then applied for a income-driven repayment plan, thinking I could at least lower that amount while I waited for the in-school deferment to be put in place. Alas, the income-driven repayment plan application was also not swiftly processed. I ended up having to make a full payment of {$890.00} on XX/XX/XXXX, to prevent a past-due notice from occurring. I then spoke to an Aidvantage associate around this time, who placed my account in an administrative forbearance while the issue was fixed. The remainder of quarter four passed by with no problem. 

Then, on XX/XX/XXXX, I was notified that my income-driven repayment plan application had been approved. This somehow must have removed me from the administrative forbearance, because the notice stated that I now owed {$250.00} ... due two days later on XX/XX/XXXX. I promptly re-prepared my application for in-school deferment and documentation of my full-time, degree-seeking status. I submitted these documents through Aidvantage 's website. I received an auto-reply message similar to the one I received in XXXX, XXXX, which was never honored. I therefore decided to brave the lengthy queue and call Aidvantage once again. I spoke with another associate that same day, XX/XX/XXXX, who saw all the documentation I have described here. He asked for my date of enrollment and my expected graduation date, which I duly told him. He then said my deferment request would be processed. I asked about the upcoming payment due. He stated he would place my account once again into administrative forbearance so I would not have to make this payment. I took him at his word. Imagine my surprise to see on my account today that the administrative forbearance was not placed on my account, that all my loans have past-due notices, and that I owe for both XXXX and XXXX, XXXX, on my next due date of XX/XX/XXXX, a total of {$510.00}. 

Below, I have attached all of the official correspondence I have received from Aidvantage during this timeframe. 

I would like to stress here that I am not requesting loan forgiveness here. I am simply requesting the in-school deferment to which I am entitled and which has graced all other years of my XXXX education thus far. It seems to me that Aidvantage does not have systems or personnel in place to adequately handle the demands of their loan portfolio. I hope you can help.