Consumer complaint received 2026-03-07 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: Maximus Federal Services, Inc.
State: TX

Complaint narrative:
My federal student loans were discharged through the Total and Permanent XXXX ( XXXX ) discharge program based on a Department of Veterans Affairs determination that I am totally and permanently XXXX. The discharge was approved on XX/XX/XXXX, with an effective discharge date of XX/XX/XXXX, pursuant to 34 C.F.R. 685.213 ( b ) ( 4 ). Because my discharge was granted based on a VA XXXX determination, it is not subject to the post-discharge monitoring period that applies to certain other types of XXXX discharges, and there are therefore no ongoing conditions that could later trigger reinstatement of the discharged loans. On XX/XX/XXXX, I contacted the Total and Permanent XXXX discharge hotline to verify the status of my loans, and the representative confirmed that the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, the federal governments central database for federal student loan records, still reflects my loans as discharged with a XXXX balance. XXXX, which serves as the borrower interface to XXXX, also reflects my loans as discharged with a {$0.00} balance, and XXXX XXXX XXXX, which processed and administered my XXXX discharge, likewise reflects the loans as discharged. Despite the federal system of record continuing to show the loans as discharged, my loan servicer, Aidvantage, now reflects the loans as reinstated and active. Federal Student Aid representatives have referred to this change as a reversal of the discharge. The only event that occurred prior to this change was a telephone call I placed to Federal Student Aid on XX/XX/XXXX, in which I asked general questions about the process for potentially returning to school in the future. During that conversation I was informed that a block existed on my account preventing submission of a FAFSA due to the XXXX discharge, and the representative stated that the block would need to be removed if I wanted to have the option to apply for financial aid in the future. I agreed only to removal of the FAFSA eligibility block so that I would have the option to apply in the future if I chose to do so. Following that call, I did not submit a FAFSA application, did not receive a federal student loan, did not receive a TEACH grant, did not submit physician certification, and did not sign the borrower acknowledgment required to obtain new federal student aid after a XXXX discharge. Because none of these events occurred, the regulatory conditions that could allow restoration of liability for previously discharged loans did not occur. When I raised this issue with Federal Student Aid and Aidvantage, the only remedy presented to me was that I should simply reapply for a new XXXX discharge once the XXXX system updates in approximately XXXX to XXXX days to reflect the reversal, because the reversal just happened and is so new. Both Aidvantage and the XXXX customer service team stated that during this period the loans would remain active, would be reported to credit bureaus, and would be subject to collection activity while I wait for the system to update and then attempt to reapply for discharge. I am also unaware of any regulatory mechanism within 34 C.F.R. 685.213 or related authorities that allows a completed VA-based XXXX discharge to be reversed solely through a telephone request without written documentation or a qualifying regulatory event. The current situation therefore presents a significant discrepancy between the federal system of record and the servicers records.

Company response to consumer: Closed with explanation