Consumer complaint received 2025-12-16 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: FL

Complaint narrative:
# # CONSUMER FINANCIAL PROTECTION BUREAU ( CFPB ) # # # STUDENT LOAN SERVICING COMPLAINT * * Complainant : * * XXXX XXXX XXXX * * Product : * * Student Loans ( Federal ) * * Companies Involved : * * XXXX, XXXX, Aidvantage ( Current Servicer ) -- - # # # SUMMARY OF COMPLAINT I am submitting this complaint against XXXX, XXXX, and Aidvantage for systemic student loan servicing failures that have resulted in materially inaccurate loan balances, improper interest capitalization, and inaccurate credit reporting. After my loans were transferred to Aidvantage, my total reported student loan balance increased drastically from approximately * * {$710000.00} * * to * * over {>= $1,000,000} * *, despite the fact that * * no payments have been due since XXXX XXXX XXXX and my loans have remained in lawful * * administrative forbearance, in-school deferment, or hardship-related deferment * * for the entire period.

At no point did any of my student loans enter default status. I maintained frequent communication with each servicer and complied with all documentation requests. Additionally, multiple federal and state lawsuits and enforcement actions against these servicers resulted in government-imposed payment pauses and heightened servicing oversight, further prohibiting adverse balance changes.

-- - # # # DETAILED STATEMENT OF FACTS 1. * * Servicer History * * * My federal student loans were successively serviced by XXXX XXXX XXXX XXXX XXXX then * * XXXX * *, and are currently serviced by * * Aidvantage * *. 
* Each servicing transfer occurred without a complete, transparent, and reconcilable accounting of principal, interest, capitalization events, or transfer adjustments. 

XXXX. * * Unexplained Balance Inflation * * * Prior to transfer to Aidvantage, my total reported federal student loan balance was approximately * * {$710000.00} * *.

* After transfer to Aidvantage, my total reported balance increased to * * over {>= $1,000,000} * *, reflecting an unexplained increase of approximately * * {$380000.00} * *.

* This increase occurred * * despite the fact that no loan payments have been due XXXX XXXX XXXX XXXX, and my loans remained in lawful * * administrative forbearance, in-school deferment, or hardship-related deferment * * during the relevant periods. 

XXXX. * * Failure to Provide Itemized Accounting * * * Aidvantage has failed to provide a * * loan-level, itemized accounting * * explaining how a {$380000.00} increase was calculated.

* No documentation has been produced identifying : * Specific interest accrual periods; * Lawful capitalization triggers; * Principal adjustments; * Transfer-related corrections or reconciliations. 
* Without this documentation, the reported balance is * * unverifiable and materially misleading * *. 

XXXX. * * Representative Accounts Affected ( Aidvantage Partial Account Numbers ) * * * Account No. XXXX XXXX XXXX XXXX XXXX XXXX  Account XXXX. XXXX XXXX XXXX XXXX XXXX XXXX  Account XXXX. XXXX XXXX XXXX XXXX XXXX XXXX  Additional Direct Loan accounts opened between XXXX XXXX XXXX XXXX XXXX and reported as Installment / Education Loans 5. * * Credit Reporting Impact * * * Aidvantage and predecessor servicers furnished inflated balances to XXXX XXXX XXXX XXXX without verification. 
* The artificial {$380000.00} increase materially distorted my debt-to-income ratio, suppressed my credit scores, and impaired access to housing, credit, and employment. 

-- - # # # VIOLATIONS ALLEGED ( STATUTORY BASIS ) The conduct described constitutes violations of the following federal statutes and regulatory standards, each of which independently requires accurate, itemized, and verifiable loan accounting : * * * Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( a ) & ( b ) * * Furnishing information that is inaccurate, incomplete, or not reasonably verifiable, and failing to conduct a lawful investigation after notice of dispute.

* * * Fair Credit Reporting Act, 15 U.S.C. 1681e ( b ) * * Failure to maintain and apply reasonable procedures to ensure maximum possible accuracy of reported balances. 

* * * Higher Education Act ( 20 U.S.C. 1083 ; 34 C.F.R. 682.208 & 685.301 ) * * Failure to properly account for interest accrual, capitalization events, and balance transfers in federally serviced student loans.

* * * CFPB Servicing Standards & UDAAP Prohibitions ( 12 U.S.C. 55315536 ) * * Unfair, deceptive, and abusive acts and practices through unexplained balance inflation and refusal to provide itemized accounting. 

-- - # # # HARM SUFFERED As a direct result of these servicing failures, I have suffered : * Artificial inflation of reported debt by * * nearly $ XXXX * *; * Credit score suppression and derogatory risk profiling ; * Delayed financial rehabilitation following bankruptcy proceedings; * Emotional distress and prolonged administrative burden attempting to correct servicer errors. 

-- - # # # NUMERICAL RECONCILIATION SUMMARY | Description | Amount ( Approx. ) | | -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- | -- -- -- -- -- -- -- -- | | Total Balance Prior to Aidvantage Transfer | {$710000.00} | | Total Balance After Aidvantage Transfer | $ XXXX | | * * Unexplained Balance Increase * * | * * {$380000.00} * * | Aidvantage has provided * * no loan-level amortization schedule, capitalization ledger, or transfer reconciliation * * supporting this {$380000.00} increase. Absent such documentation, the reported balance is * * not reasonably verifiable * * and can not be lawfully furnished. 

-- - I certify that the information provided is true and accurate to the best of my knowledge and request immediate regulatory intervention. 

* * Submitted by : * * XXXX XXXX XXXX

Company response to consumer: Closed with explanation