Consumer complaint received 2025-07-22 00:00:00
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.
State: OH

Complaint narrative:
Re : Complaint Regarding Unauthorized Loan Consolidation with Aidvantage Account Number : XXXXXXXX XXXX XXXX Dear Consumer Financial Protection Bureau : I am writing to submit a formal complaint against Aidvantage, my federal student loan servicer, for processing a Direct Consolidation Loan without my authorization and failing to reinstate my approved Income-Driven Repayment ( IDR ) plan upon request. 

Background On XX/XX/year>, I applied for both a Direct Consolidation Loan consultation and an IDR plan, after being assured by an Aidvantage representative that no consolidation would occur unless I explicitly chose to move forward. 

Shortly thereafter, my IDR plan was approved, reducing my required monthly payment to approximately {$300.00}. I immediately decided I did not wish to proceed with consolidation and did not sign a promissory note. 

On XX/XX/year>, when I logged into Aidvantage to make my payment, I discovered my loan had been marked XXXX, raising my monthly obligation to nearly $ XXXX amount I can not afford given existing financial obligations. This year I had to drop health insurance for my family just to be able to pay the $ 200 monthly student loan payment so my wages would not be garnished. 

The XXXX XXXX XXXX website still shows my consolidation application as XXXX, confirming that no valid promissory note was signed. 

Attempts to Resolve I have contacted Aidvantage multiple times ( most recently on XXXX [ XXXX ], XXXX ), requesting that they cancel the consolidation application and restore my IDR payment schedule. Each time, I was told they are unable or unwilling to assist, despite having clear federal regulations that permit consolidation cancellation prior to signing a promissory note. 

I also contacted the XXXX XXXX XXXX  Servicing Support Center, but they directed me back to Aidvantage without resolution. My financial hardship grows daily, and this error threatens wage garnishment, loss of health coverage, and severe emotional distress for myself and my daughter.

Requested Relief Immediate withdrawal of the Direct Consolidation Loan application, effective as of the original application date. 

Restoration of my approved IDR plan with a monthly payment of approximately {$300.00}. 

Assurance that no adverse credit reporting or collection actions will occur while this matter is under review.

Please investigate this matter, as Aidvantages actions appear to violate the servicing rules governing federal student loans and the Consumer Financial Protection Acts prohibition against unfair loan servicing practices. I respectfully request a written response within 15 business days outlining the actions you will take to ensure my account is corrected and protected from further unauthorized changes. 

Thank you for your prompt attention and assistance. I look forward to your confirmation that my consolidation application has been reversed and my IDR plan reinstated. 

Sincerely, XXXX XXXX XXXX XXXX Account Number : XXXX XXXX XXXX Enclosures : Screenshot of studentaid.gov showing Pending status

Company response to consumer: Closed with explanation