Consumer complaint received 2026-06-11 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Maximus Federal Services, Inc.
State: OH

Complaint narrative:
Failure to Timely Process Federal Loan Consolidation, Default Reporting Injury, Lack of Notice, and Potential Unfair Servicing Conduct Summarize this email XXXX, XXXX XXXX - XXXX XXXX XXXX Your message To : XXXX, XXXX XXXX - XXXX Subject : Re : Failure to Timely Process Federal Loan Consolidation, Default Reporting Injury, Lack of Notice, and Potential Unfair Servicing Conduct Sent : Thursday, XX/XX/XXXX XXXX XXXX ( XXXX ) Eastern Time ( XXXX & XXXX ) was read on Thursday, XX/XX/XXXX XXXX XXXX ( XXXX ) Eastern Time ( XXXX & XXXX ). XXXX XXXX XXXX CONFIDENTIALITY NOTICE : This e-mail, including attachments, is for the sole use of the intended recipient ( s ) and may contain confidential and privileged information or otherwise be protected by law. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender and destroy all copies and the original message. XXXX XXXX XXXX CONFIDENTIALITY NOTICE : This e-mail, including attachments, is for the sole use of the intended recipient ( s ) and may contain confidential and privileged information or otherwise be protected by law. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender and destroy all copies and the original message. XXXX XXXX XXXX CONFIDENTIALITY NOTICE : This e-mail, including attachments, is for the sole use of the intended recipient ( s ) and may contain confidential and privileged information or otherwise be protected by law. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender and destroy all copies and the original message. XXXX XXXX You don't often get email from XXXX. Learn why this is important Your message has been delivered to the following recipients : Advocate ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, XXXX XXXX XXXX, Lack of Notice, and Potential Unfair Servicing Conduct XXXX XXXX You don't often get email from XXXX. Learn why this is important Your message has been delivered to the following recipients : XXXX, XXXX XXXX - XXXX ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, XXXX XXXX XXXX, Lack of Notice, and XXXX XXXX XXXX XXXX XXXX Outlook licensing XXXX Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server : licensing ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, XXXX XXXX XXXX, Lack of Notice, and Potential Unfair Servicing Conduct You Thu XXXX XXXX PM Great, thank you so much! Respectfully, XXXX XXXX XXXXXXXX XXXX XXXX ( Pending ), XXXX, XXXX, XXXX Founder | DALS XXXX XXXX XXXX XXXX XXXX & XXXX XXXX XXXX XXXX XXXX Procurement | Financial Diplomacy | Small Business Advocacy XXXX Advocate Thu XXXX XXXX XXXX Thank you, XXXX. This case will be assigned today. XXXX XXXX XXXX You don't often get email from XXXX. Learn why this is important Your message has been delivered to the following recipients : Advocate ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, XXXX XXXX XXXX, Lack of Notice, and XXXX XXXX XXXX XXXX XXXX Outlook FAST XXXX Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server : FAST ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, XXXX XXXX XXXX, Lack of Notice, and XXXX XXXX XXXX XXXX XXXX Outlook licensing XXXX Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server : licensing ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, XXXX XXXX XXXX, Lack of Notice, and Potential Unfair Servicing Conduct You Thu XXXX XXXX AM Greetings, Aidvantage and thank you for the response. On XX/XX/XXXX. An outgoing call was placed at XXXX, which lasted for XXXX minutes and XXXX seconds, placed from call XXXX to XXXX. The following feedback : An alleged response was given on XXXX Thu XXXX XXXX XXXX You don't often get email from XXXX. Learn why this is important Your message has been delivered to the following recipients : Advocate ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, Advocate Thu XXXX XXXX XXXX Hello, We have received your correspondence regarding your student loan account. We are working to get answers, but need time to research your account. We will contact you with a response as soon as we can. We appreciate your patience. Please call us at XXXX XXXX Outlook Thu XXXX XXXX XXXX Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server : FAST ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, Default Reporting Injury, Lack of Notice, and Potential XXXX XXXX Thu XXXX XXXX XXXX Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server : licensing ( XXXX ) Subject : Re : Failure to Timely Process Federal Loan Consolidation, Default Reporting Injury, Lack of Notice, XXXX Thu XXXX XXXX XXXX Greetings, XXXX XXXX. As of XX/XX/XXXX at XXXX XXXX, there has been no attempt to resolve this matter no calls placed to XXXX or an email. I will continue to file complaints against AidVantage licensing in every state until my student loan is consolidated. XXXX XXXX XXXX FAST XXXX XXXX XXXX XXXX Aidvantage XXXX Maximus Education, XXXX Maximus Education, XXXX XXXX XXXX XXXX, XXXX XXXXXXXX XXXX, VA XXXX Complainant : XXXX XXXX XXXX XXXX : XXXX XXXX XXXX : XXXX, Project Management Concentration Federal Student Aid Consolidation Application Date : XX/XX/XXXX Current Reported Status : Pending Issue : Failure to Timely Process Federal Loan Consolidation, Default Reporting Injury, Lack of Notice, and Potential Unfair Servicing Conduct I am filing this formal complaint against Aidvantage / Maximus Education, LLC regarding the handling of my federal student loan consolidation application and the resulting harm caused by the continued default status reflected through Federal Student Aid and/or related credit reporting activity. According to XXXX XXXX XXXX, I submitted a loan consolidation application on or about XX/XX/XXXX. As of today, the consolidation status remains pending. I did not receive meaningful notice, explanation, written contact, adverse action information, or a clear servicing communication explaining why the matter remained unresolved for months while the default status continued to cause credit injury. The central issue is that my student loan account remains in default status with the Default Resolution Group, despite my submission of a consolidation application intended to resolve the default and place the account in a proper repayment structure. Aidvantages failure to timely and accurately process the consolidation, communicate deficiencies, or explain the treatment of my XXXX XXXX has caused direct financial and credit harm. I dispute any reporting, servicing, or collection activity that continues to reflect me in default where the servicer failed to properly process, complete, or communicate the status of a pending consolidation application. The failure to process the consolidation in a timely and transparent manner has created a credit-risk injury, impaired my credit profile, and placed me in a worse financial position despite my attempt to resolve the account through the federal consolidation process. I specifically dispute the apparent exclusion or non-processing of my XXXX XXXX. XXXX XXXX are federally recognized education loans and may be eligible for consolidation into a Direct Consolidation Loan when applicable program requirements are met. If Aidvantage determined that my XXXX XXXX could not be consolidated, was not eligible, required additional action, or was subject to a separate processing requirement, Aidvantage had an obligation to provide clear written notice explaining the reason, the required correction, and the impact on my account status. Instead, the account remained pending, unresolved, and injurious to my credit standing. This complaint is also supported by federal student loan consolidation law, federal credit reporting law, and consumer protection standards governing unfair, deceptive, or abusive acts or practices. First, federal law permits eligible federal education loans, including certain XXXX XXXX, to be consolidated into a Direct Consolidation Loan when the borrower satisfies applicable program requirements. The Direct Consolidation Loan program is authorized under the Higher Education Act and implementing regulations, including 20 U.S.C. 1087e ( g ) and 34 C.F.R. 685.220. The regulation governing Direct Consolidation Loans identifies the categories of eligible loans and establishes the framework for consolidation processing. If Aidvantage, Maximus Education, LLC, or any related servicer determined that my XXXX XXXX could not be consolidated, required separate action, or was excluded from the consolidation application, the servicer should have provided timely written notice explaining the reason for exclusion, the required corrective action, and the credit-reporting consequences of leaving the loan unresolved. Second, the continued reporting or maintenance of default status while a consolidation application remains pending raises serious concerns about accuracy and integrity under the Fair Credit Reporting Act. Under 15 U.S.C. 1681s-2 ( a ), a furnisher must not furnish information to a consumer reporting agency that it knows or has reasonable cause to believe is inaccurate. Under 15 U.S.C. 1681s-2 ( b ), after receiving notice of a dispute from a consumer reporting agency, a furnisher must conduct an investigation, review all relevant information provided, report the results of the investigation, and correct, delete, or permanently block information that is found to be inaccurate, incomplete, or unverifiable. Regulation V, 12 C.F.R. Part 1022, Subpart E, further governs the duties of furnishers of information to consumer reporting agencies. Under 12 C.F.R. 1022.42, furnishers are required to establish and implement reasonable written policies and procedures concerning the accuracy and integrity of information furnished to consumer reporting agencies. The accuracy and integrity standards are further informed by Appendix E to Part 1022, which addresses whether furnished information correctly reflects the consumers liability, account terms, account status, payment status, and other relevant account information. Under 12 C.F.R. 1022.43, furnishers also have duties concerning direct disputes submitted by consumers, including disputes involving account status, payment history, balance, or other information contained in a consumer report. Third, the case law recognizes that credit reporting may violate the FCRA where the information is not only technically incorrect, but also materially misleading. In XXXX XXXX XXXX XXXX XXXX XXXX XXXX of Virginia, XXXX XXXX XXXX, XXXX ( XXXX XXXX. XXXX ), the court recognized that reporting may be actionable where it creates a materially misleading impression regarding the consumers account status. In XXXXXXXX XXXX XXXX XXXX XXXXXXXX, XXXX, XXXX XXXX XXXX, XXXX ( XXXXXXXX XXXX XXXX ), the court held that a furnishers investigation under XXXX XXXX. XXXX ( b ) must be reasonable and must meaningfully address the dispute. In XXXX XXXX XXXX XXXX XXXX Bank, XXXX XXXX XXXX, XXXX ( XXXX XXXX. XXXX ), the court likewise held that furnishers must conduct a reasonable investigation after receiving notice of a dispute and XXXX be liable for failing to correct inaccurate or incomplete information. This matter is particularly serious because courts have applied these principles in the student-loan context. In XXXX v. XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX XXXX XXXXXXXX ), the United States XXXX XXXX XXXX for the XXXX XXXX held that a furnishers investigation must be reasonable and that credit reporting may be actionable where it is materially misleading, even if some isolated component of the reporting could be viewed as technically accurate. That case is directly relevant here because the issue is not merely whether a default notation exists in isolation, but whether the continued default status accurately and fairly reflects the full circumstances, including my pending consolidation application, the lack of meaningful notice, and the servicers failure to timely process or explain the treatment of all eligible loans. Fourth, the conduct described in this complaint raises concerns under the prohibition against unfair, deceptive, or abusive acts or practices. Under the Consumer Financial Protection Act, 12 U.S.C. 5531 and 5536, covered persons and service providers are prohibited from engaging in unfair, deceptive, or abusive acts or practices in connection with consumer financial products or services. A practice may be unfair when it causes or is likely to cause substantial injury to the consumer, the injury is not reasonably avoidable, and the injury is not outweighed by countervailing benefits to consumers or competition. Here, the injury was not reasonably avoidable because I submitted a federal consolidation application through the proper XXXX XXXX XXXX process on or about XX/XX/XXXX, yet the application remains pending months later without meaningful communication, while the default status continues to damage my credit profile. XXXX, the injury is concrete and financial in nature. The continued default status affects my credit profile, creditworthiness, financial reputation, borrowing capacity, and ability to maintain financial stability while enrolled in XXXX XXXX XXXX program with a concentration in XXXX XXXX. The United States Supreme Court has recognized that inaccurate or harmful credit reporting can constitute a concrete injury where it bears a close relationship to traditionally recognized reputational and financial harms. See XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX ), and XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX ). While those cases address XXXX XXXX standing in federal court, they confirm the seriousness of inaccurate or misleading credit reporting and the real-world harm that can result when adverse credit information is disseminated or maintained. Sixth, I request regulatory review of any collection-related authority, registration, license, or exemption claimed by Aidvantage, Maximus Education , LLC, the XXXX XXXX XXXX , or any related party acting in a collection or default-resolution capacity. Based on my review, I have not located an active XXXX registration that authorizes collection in Pennsylvania or Ohio. I understand that federal student loan servicers may claim federal authority, contractual authority, or statutory exemption from certain state licensing regimes. However, because this matter involves default servicing, collection consequences, and credit reporting injury affecting a consumer connected to Pennsylvania and Ohio, I request that the appropriate regulator verify whether the entity was properly authorized, exempt, registered, or otherwise permitted to engage in the relevant servicing or collection activity. For these reasons, I dispute the continued default status and any related credit reporting as inaccurate, incomplete, materially misleading, and injurious. I request a full investigation into the XX/XX/XXXX, consolidation application, including the loan-level treatment of every loan, the reason the consolidation remains pending, the reason my XXXX XXXX was not consolidated or resolved, the communications allegedly sent to me, the identity of any furnisher that reported adverse information, and the legal basis for continuing the default status while my consolidation application remained unresolved. I further request that all negative reporting related to this unresolved default status be deleted, corrected, or suppressed pending the completion of a full investigation. It is unfair and injurious for a borrower to be penalized through default reporting when the borrower took affirmative steps to consolidate the loan and the servicer failed to process, explain, or resolve the application.I further request that all negative reporting related to this unresolved default status be deleted, corrected, or suppressed pending the completion of a full investigation. It is unfair and injurious for a borrower to be penalized through default reporting when the borrower took affirmative steps to consolidate the loan and the servicer failed to process, explain, or resolve the application. This complaint is submitted to preserve my administrative record, dispute the account status, and request regulatory review of Aidvantage XXXX Maximus Education, LLCs servicing, reporting, collection authority, and consumer communication practices.

Company response to consumer: Closed with explanation