Consumer complaint received 2024-12-13 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: NY

Complaint narrative:
Here is the problem Following an update to the NSLDS on XX/XX/year>, I now appear to be exceeding aggregate loan limits. Attached is an underlying loan worksheet reflecting data from both NSLDS updates.

I can substantiate that the information contained in the current NSLDS is inaccurate.

The first image attached is a screenshot of the NSLDS taken on XX/XX/year> The second image attached is a screenshot of the NSLDS taken on XX/XX/year> Upon review of the provided data, several key observations emerge : Increase in Total Subsidized Loan Amount : The total subsidized loan balance has increased by {$5400.00}, despite no additional disbursements of this loan type. It is likely that this increase is attributable to capitalized interest being incorrectly included in the subsidized consolidation loan balance. 

Discrepancy in Aggregate Principal Balance Calculation : Based on the aggregate principal balance as of XX/XX/year>, and the subsequent additional disbursement of {$10000.00}, the correct aggregate principal balance should total {$200000.00}. However, when generating a XXXX report using the XX/XX/year>, NSLDS save, the student is shown to have received {$190000.00}. In contrast, the XXXX report based on the most recent NSLDS update reflects an aggregate principal balance of {$200000.00}, with the {$10000.00} disbursement accounting for the difference. 

Difference Between NSLDS and XXXX as of XX/XX/year> : The XXXX XXXX from XX/XX/year>, indicates a {$2000.00} discrepancy when compared to the XXXX. This variance can be traced to the subsidized/unsubsidized consolidation loan aggregate balance as reported at that time. 

Difference Between Current NSLDS and XXXX Data : The current NSLDS data and ULS report reflect a difference of {$24000.00}. When comparing the consolidated loan aggregate Outstanding Principal Balance ( OPB ) from todays NSLDS update to the XX/XX/year>, data, a variance of {$26000.00} is observed. 

Capitalized Interest Inclusion : Based on this analysis, it appears that capitalized interest is now being factored into the aggregate OPB. As established guidelines stipulate, capitalized interest should not be included in the calculation of aggregate loan balances. 

This discrepancy suggests an error in the NSLDS update that requires correction to ensure compliance with established loan reporting standards. 

The attached spreadsheets provide irrefutable evidence that capitalized interest is now being incorrectly factored into the aggregate Outstanding Principal Balance ( OPB ). This miscalculation is a clear deviation from established standards, as capitalized interest should not be included in the calculation of aggregate loan balances for federal reporting and financial aid purposes. By analyzing the data, it is evident that the variance in aggregate OPB is directly linked to the inclusion of capitalized interest, particularly in the subsidized consolidation loan. This error has artificially inflated the aggregate loan balance and has caused the system to incorrectly flag my account as exceeding the loan limits. 

Here is a detailed line-by-line comparison of the XX/XX/year>, and XX/XX/year>, NSLDS data, the following points substantiate the identified discrepancies and prove the error : XXXX. Increase in Total Subsidized Loan Balance by {$5400.00} From XX/XX/year> ( Document [ XXXX ] ) : TOTAL XXXX XXXX  : {$23000.00} From XX/XX/year> ( Document [ XXXX ] ) : TOTAL XXXX XXXX  : {$23000.00} ( unchanged ) However, the TOTAL XXXX XXXX  shows a significant increase : XX/XX/year> ( Document [ XXXX ] ) : {$190000.00} XX/XX/year> ( Document [ XXXX ] ) : {$200000.00} This {$10000.00} increase corresponds to the disbursed amount reflected in Loan XXXX, as outlined in the XX/XX/year>, spreadsheet. This suggests that {$5400.00} of this increase is due to capitalized interest being included in the consolidation loan, inflating the aggregate OPB incorrectly. 
XXXX. Discrepancy in Aggregate Principal Balance Calculation Based on XX/XX/year>, totals and an additional disbursement of {$10000.00}, the correct Aggregate Principal Balance should be {$200000.00}. 
The XX/XX/year>, TOTAL XXXX XXXX  reflects {$200000.00}, showing a discrepancy of {$2000.00}. 
This {$2000.00} discrepancy likely originates from the subsidized/unsubsidized consolidation loan aggregate balance as of XX/XX/year>, as evidenced by the unchanged TOTAL XXXX XXXX  but varying total balances. 

XXXX. Difference Between NSLDS and XXXX XXXX as of XX/XX/year> XXXX XX/XX/year> : TOTAL XXXX XXXX  : {$190000.00} XXXX Data : Reflects {$2000.00} less than expected due to inconsistencies in subsidized/unsubsidized loan consolidation data. 

XXXX. Difference Between Current NSLDS and XXXX XXXX XX/XX/year>, XXXX : TOTAL XXXX XXXX  : {$200000.00} XXXX reflects a difference of {$24000.00} compared to prior data, tracing back to an inclusion of {$26000.00} in capitalized interest into the OPB. 

XXXX. Capitalized Interest Inclusion A comparison of the XXXX XXXX XXXX XXXX shows the variance aligns with an apparent shift in methodology, where capitalized interest has been factored in, inflating the TOTAL XXXX XXXX  balance. 
Established guidelines dictate that capitalized interest should not be included in Aggregate OPB calculations, making this discrepancy a procedural error. 

Supporting Evidence from Documents Loan XXXX ( XX/XX/year>, Document [ XXXX ] ) : Reflects the disbursed amount of {$10000.00}. 
Aggregate Balances : XX/XX/year> ( Document [ XXXX ] ) : {$190000.00} XX/XX/year> ( Document [ XXXX ] ) : {$200000.00} Increase is disproportionate to actual disbursements, implicating capitalized interest inclusion. 

This data substantiates the claim that the NSLDS system error, resulting in the inclusion of capitalized interest in aggregate XXXX, has caused an artificial inflation of the balance and requires immediate rectification to avoid further adverse academic and financial consequences. 
As a result of this error, my tuition for the current semester remains unpaid. I am currently in the middle of an active semester, and this unresolved issue is placing my academic career in serious jeopardy. Without immediate resolution, I risk being unable to complete my coursework, which would have significant repercussions for both my academic progress and future opportunities. I am XXXX courses away from finishing my degree. 

I urgently request that this matter be reviewed and rectified to ensure that my financial aid eligibility is restored, allowing for the payment of my tuition and the continuation of my education without further disruption. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation