Consumer complaint received 2026-05-14 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: CA

Complaint narrative:
referencing the files provided to prove identity discrepancies and financial coercion : Date : XX/XX/XXXX Formal Dispute and Request for Discharge of Student Loans and reimbursement of grant money and title IV Funds ( refunds ). Institution : XXXX XXXX XXXX XXXX ( XXXX : XXXX ) Please allow my to upload and submit the files needed. I. STATEMENT OF CLAIM : I am writing to formally dispute the validity of all federal student loans and grants associated with my enrollment at XXXX XXXX XXXX XXXX ( XXXX ). My claim is based on documented evidence of systemic fi nancial fraud, the use of unauthorized electronic identities to execute legal contracts, and the illegal coercion of federal credit balances. II. EVIDENCE OF IDENTITY MISREPRESENTATION ( EMAIL FRAUD ) : The institution executed legally binding financial aid and enrollment documents using email addresses that I did not own, operate, or have access to at the time of signing. Exhibit A : Enrollment Agreement ( File : XXXX XXXX XXXX XXXX XXXX ) Location : XXXX XXXX XXXX XXXX XXXX. Discrepancy : The document lists my primary email as XXXX. I have never owned or operated this account. Fraudulent Execution : XXXX XXXX ( Signature Certificate ) shows the document was " Embedded Signed '' using this unauthorized email address. Exhibit B : Master Promissory Note ( File : XXXX XXXX XXXX XXXX ) Location : XXXX XXXX XXXX XXXX. Discrepancy : The MPN lists XXXX. This is an account I was locked out of and ceased using long before this date. My verified communication email at the time |was XXXX. Impact : By using unauthorized emails, the school bypassed the automated federal notification system, ensuring I would not receive disbursement notices or " Right to Cancel '' alerts directly. III. SYSTEMIC COERCION OF FEDERAL CREDIT BALANCES : The institution engaged in a coordinated effort to intercept Title IV funds a refund intended for my living expenses by forcing an immediate " sign-back '' of refund checks. Exhibit C : Student Mastersheet ( File : XXXX XXXX XXXX XXXX ) Location : Page 1, Transaction # XXXX. Evidence of Redirection : On XX/XX/XXXX, the ledger shows a " SCHOOL PAY TO STUDENT '' for {$990.00}. On XX/XX/XXXX, the exact same amount was recorded as a " CASH PAYMENT '' back to the school. Testimony of Coercion : On the day this check was issued, Corporate Director XXXX XXXX and Advisor XXXX XXXX verbally instructed me that these funds " needed '' to return to the school for tuition, coarsed into endorsing the check back to the school within minutes of receiving check.. Pattern of Conduct : This was not an isolated incident. My partner, XXXX XXXX XXXX, was subjected to the identical process on the same day with Check # XXXX ( {$890.00} ). The schools delay in recording these " cash '' payments until XX/XX/XXXX ( despite the physical transaction occurring in XXXX ) indicates a deliberate attempt to falsify the ledger timeline. IV. UNAUTHORIZED DISBURSEMENT AUTHORIZATIONS : Exhibit D : Disclosures ( File : disclosures XXXX XXXX XXXX XXXX XXXX XXXX ) Location : XXXX XXXX ( " Understanding Disbursements '' ). Violation : This form authorizes the school to keep credit balances for institutional charges. However, this form was " initialed '' and " signed '' via the fraudulent XXXX account. Consequently, the school had no legal standing to withhold or pressure me to return my {$990.00} refund. V. REQUESTED ACTION : Given the evidence of unauthorized electronic signatures and the misrepresentation of federal credit balance rights, I request : Full Discharge : Cancellation of all federal loans serviced under this MPN. Refund : Reimbursement of all " sign-back '' checks and payments made to the institution. Audit : A formal review of XXXX XXXX XXXX XXXX use of " Embedded Signing '' and their handling of student credit balances for the XXXX award year. I certify under penalty of perjury that the information provided is true and correct. This is timeline of " my data '' that is very questionable : " XXXX took out '' two primary loans totaling {$9500.00} in original principal. As of XX/XX/XXXX, the total outstanding balance ( including interest ) is {$10000.00}. " XXXX received '' a total of {$8600.00} in Federal Pell Grants, which do not require repayment. XXXX Award Year : {$3400.00} XXXX Award Year : {$5200.00} Lifetime Eligibility Used ( LEU ) : 120.838 % Chronological Timeline & Critical Dates Academic & Loan Origination ( XXXX XXXX XX/XX/XXXX : Program and loan periods began. XX/XX/XXXX : Both loans were officially originated. XX/XX/XXXX : First disbursement of {$1700.00} ( XXXX ) and {$3000.00} ( XXXX ). XX/XX/XXXX : Second disbursement of {$1700.00} ( XXXX ) and {$3000.00} ( XXXX ). XX/XX/XXXX : End of the loan period. XXXX & Grace Period ( XXXX ) XX/XX/XXXX : Entered " In Grace Period '' status. XX/XX/XXXX : Official graduation date. XX/XX/XXXX : Entered " In Repayment '' status for the first time. XX/XX/XXXX : Status changed to Forbearance. Repayment & Delinquency ( XXXX ) XX/XX/XXXX : Standard Repayment plan officially began. XX/XX/XXXX : Status returned to " In Repayment ''. XX/XX/XXXX : Delinquency Date recorded for both loans. XX/XX/XXXX : Next payment due date for both loans. Notable Discrepancies & Issues Delinquency vs. Repayment Status : Although the " Current Loan Status '' is listed as RP ( In Repayment ), there is a Delinquency Date of XX/XX/XXXX noted on both loans. This suggests the account is behind on payments. Payment Discrepancy : The scheduled monthly payments are {$39.00} for the subsidized loan and {$70.00} for the unsubsidized loan. However, the document also lists the " Current Standard-Standard Schedule Payment Amount '' as {$0.00}, which may conflict with the active delinquency status. Cumulative Payments : Despite being in repayment since early XXXX, the " Loan Cumulative Payment Amount '' for both loans is {$0.00}, indicating no payments have been successfully processed as of the file date. Program Length Variation : The student 's program is listed twice with different " Published Lengths '' once as 1.0 year and once as 1.2 years. The school offered the Unsubsidized loan to fill the remaining gap in your funding. The Federal Pell Grantcovered a significant portion of my education. My records show that " I did receive '' a large amount of grant money that does not need to be paid back ( I was completely unaware of the grant ). The supposed reason " I have '' both grants and loans is that the grant money covered about half of the costs, while the loans were used to cover the remaining balance and potentially other expenses. Breakdown of My " Grant Money '' ( Pell Grants ) According to my data, " I was awarded '' a total of {$8600.00} in Federal Pell Grants : XXXX Award Year : {$3400.00} XXXX Award Year : {$5200.00} This is money the government provided based on financial need, and it has already been " applied to my account '' ( what account I would like to know please ) at the XXXX XXXX XXXX XXXX . Why were loans still taken out? Even with over {$8600.00} in grants, the total cost of a specialized program like XXXX XXXX often exceeds the maximum grant amount. Here is how the two worked together in your case : Grant First : The {$8600.00} in Pell Grants was applied to my tuition and fees first. Loan for the Gap : The {$9500.00} in loans was likely used to cover the " gap '' the leftover tuition, books, supplies, or living expenses ( the school does not have dorms ) that the grant didn't reach. Total Funding : Between the grants and the loans, a total of approximately {$18000.00} was allocated for my education. Conflicting Information in my Records There are a few details in my file that might feel " hypocritical '' or confusing : The " Standard-Standard '' Plan : My file shows a monthly payment of {$0.00} on one line, but then lists a delinquency starting on XX/XX/XXXX. This usually happens if there is a paperwork delay or if a repayment plan wasn't fully processed before the first payment was missed. Cumulative Payments : My record shows I have paid {$0.00} so far, which matches the delinquency note. Loan Status : It says " In Repayment, '' but also shows I am/was in " Forbearance '' ( a temporary pause ) from XX/XX/XXXX to early XXXX. In short, the grant money was definitely used, but it wasn't enough to cover everything, which is why the two loans ( XXXX XXXX XXXX ) were added to my financial aid package. The two grants listed in my student data are the Federal Pell Grants for the XXXX and XXXX award years, totaling {$8600.00}. According to my federal records, these funds were sent directly to XXXX XXXX XXXX XXXX. Here is the breakdown of the specific grants the school received on my behalf ( that I never saw not even a XXXX from ) : XXXX XXXX XXXX : {$3400.00} XXXX Pell Grant : {$5200.00} Why " I didn't receive a check '' : In the federal financial aid system, schools are generally required to apply grant and loan money directly to my tuition and fees first. If there is money left over after the school is paid ( a " credit balance '' ), they are legally obligated to give that remaining amount to me ( the student ) within 14 days. Based on the patterns I've identified, there are several " conflicting '' details in my student data that support my concerns about how these funds were handled : Disbursement vs. Possession : The records show the money was " disbursed '' ( sent to the school ), but they do not confirm that the school ever passed any credit balance on to me. ( Charges may have been used to artificially " consume '' my grant money so that no refund check would be triggered. ) Loan Overlap : The data shows " I was awarded '' {$9500.00} in loans on top of the {$8600.00} in grants. For a certificate program, nearly {$18000.00} in total funding is quite high. If the school kept the grants and the loans, they effectively doubled their revenue from my enrollment without my knowledge. The " Independent '' Status : My record lists me as an " Independent '' XXXX for the XXXX award year. This often makes XXXX eligible for higher amounts of aid, which may explain why the grant amounts were so significant. The Role of the LEDGER : My student data file confirms the existence of the money, but my Student ledger would have shown exactly how the school applied that {$8600.00}. If the ledger shows the grants were used for " miscellaneous fees '' or other false inputs that I never used, it provides evidence of the misappropriation. Voided Grants : On XX/XX/XXXX, the school voided a Pell Grant ( XXXX ) for {$3400.00} and an FSEOG grant for {$100.00}, effectively removing nearly {$3500.00} in " free '' money from my account. Credit Balances : Even with the voided grants, the ledger shows I had a credit balance ( money owed to me ) of - {$690.00} as of XX/XX/XXXX. Roo m and Board Investigation : While the " Room and Board '' language appears in the general definitions of the MPN, I closely inspected my STUDENT MASTERSHEET for specific charges. My ledger lists : Tuition ( {$6700.00} ), Registration ( {$200.00} ), Lab Supplies ( {$170.00} ), Insurance ( {$62.00} ), Background Check ( {$31.00} ), Uniform ( {$22.00} ), STRF Fee ( {$47.00} ), and Books ( {$730.00} ). The Discrepancy : If the school or my loan servicer claimed my funds were used for " living expenses '' while you I living in XXXX and commuting, but the ledger only shows institutional fees, it suggests a mismatch between how the money was reported to the government and how it was actually charged by the school. The Email Identity Trail : The files confirm that the school used three different variations of my email address, two of which I've identified as incorrect or inaccessible : Enrollment Agreement ( signed XX/XX/XXXX ) : Lists your email as XXXX. You have stated you never owned this account. Most importantly, the signature certificate on page 11 shows this email was used to execute the " Embedded Signing '' process. Master Promissory Note ( signed XX/XX/XXXX ) : Lists my email as XXXX. This is the account I wsd locked out of due to the lost cell phone. My Actual Email : You confirmed your legitimate address during my time at school was XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ). The Discrepancy : Since the XXXX XXXX XXXX email address was used to sign your legally binding Enrollment Agreement on XX/XX/XXXX, it raises a major question of how a " verified '' electronic signature was obtained through an account you didn't own. 2. Signature and Initial Discrepancies I mentioned my signature style involves my first name overlapping my second. Looking at the metadata : Enrollment Agreement : This was signed using an " Embedded Signing '' service ( Ref : XXXXXXXX ). Comparison : If the signature on this agreement appears as a typed font or a simplified scrawl that doesn't match my overlapping " XXXX XXXX '' style ( as it doesn't m match my initials ) it provides evidence that the signature may have been generated by someone else using the XXXX XXXX XXXX email address. 3. Financial Ledger " Smoking Guns '' The STUDENT MASTERSHEET ( ledger ) contains specific transactions that I should include : The Missing Check ( # XXXX ) : The ledger shows a transaction on XX/XX/XXXX titled " SCHOOL PAY TO STUDENT '' for {$990.00} Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation