Consumer complaint received 2025-04-16 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account status incorrect
Company: Maximus Federal Services, Inc.
State: WI

Complaint narrative:
Formal Complaint Against Aidvantage  Unfair Reporting of Delinquency and Credit Damage To whom it may concern, I am filing this complaint in regard to a serious issue involving Aidvantages  handling of my federal student loans, specifically their decision to report my account as XXXX days delinquentresulting in a devastating drop of over XXXX points to my credit score. I believe this was an unfair and avoidable outcome, driven not by legal necessity but by rigid internal policy and an unwillingness to exercise discretion or provide reasonable assistance. 

Due to Aidvantages own system restrictions, the XXXX application portal was inaccessible throughout much of XXXX and XX/XX/year>. I was XXXX XXXX from my XXXX XXXX on XX/XX/year>, and immediately took steps to stabilize my financial situation. On XX/XX/year>, the very first day the system allowed it, I submitted my Income-Driven Repayment ( IDR ) application through XXXX. On XX/XX/year>, I received an official email from Aidvantage  confirming my account had been placed into forbearance. On XX/XX/year>, I received another message confirming that my account was in good standing. 

Despite all of this, Aidvantage  still reported multiple accounts as XXXX days delinquent as of XX/XX/XXXX, just one day before I was able to act. The result : severe and immediate damage to my credit profile, despite my proactive effort to resolve the matter as quickly as possible. 

This punishment is not based on financial misconduct or unwillingness to payit is a technicality. I have made clear to Aidvantage  that I am fully willing to set up payment arrangements or resolve any past-due balance, if one exists. Instead, I was told that they can not remove the delinquency because of the way their system locks in reporting at the end of the monthnot because they are legally prohibited from doing so, but because their policy will not allow it. I have even spoken with representatives at credit bureaus who confirmed that loan servicers do have discretion to retract negative reporting under certain circumstances. 

I am now facing serious, life-altering consequences : I have sold my car in preparation for a XX/XX/XXXX relocation to XXXX, XXXX  to start a XXXX  XXXX. 

With my credit score drastically lowered, I am unable to secure a new auto loan or be approved for an apartment. 

Without transportation or housing, I may be unable to begin employment, jeopardizing both my income and long-term financial stability. 

All I am asking for is fairness. My loans are currently in forbearance and reflect good standing. I acted in good faith the moment I was able. The delinquency status and its devastating impact on my credit are not representative of my intent, character, or current account status. 

I respectfully request that Aidvantage  retract the XXXX delinquency reporting, as it does not align with the broader context of this situation, nor with the flexibility I believe they are capable of exercising. 

Thank you for your time and for reviewing this matter with the fairness it deserves. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation