Consumer complaint received 2025-04-18 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Maximus Federal Services, Inc.
State: DC

Complaint narrative:
Rebuttal Statement : I am filing a follow-up complaint against Aidvantage and the U.S. Department of Education for continued violations following their response to CFPB Case # XXXX. 

This complaint challenges the legal foundation of the transferred and currently serviced student loans listed under account number XXXX, previously serviced by XXXX XXXX and then XXXX, now held by Aidvantage. I am requesting the immediate discharge of these loans and a full federal investigation into the handling of my records, balances, and personal data under both FERPA and the Privacy Act.

Key points of my complaint include : 1. Unauthorized Transfer and Lack of Consent : I was not notified nor did I authorize the transfer of my loans to Aidvantage. The transfer occurred after my graduation in XXXX and XXXX, with no re-certification, enrollment verification, or signed agreement on my part. The continued use and servicing of my loan data without proper authorization is unlawful. 
XXXX. Improper Servicing History with XXXX : The majority of inflated balances and capitalized interest originated while my loans were serviced by XXXX. XXXX was later barred from federal student loan servicing following state and federal investigations for predatory and deceptive practices. I believe the unexplained interest growth occurred during their tenure. Any loan balances based on servicing misconduct should be deemed void. 
XXXX. XXXX and Privacy Act Violations : Aidvantage and/or the Department of Education XXXX XXXX stored, and disclosed my personally identifiable education records ( including SSN, enrollment status, and loan history ) without my written consent post-graduation. I was no longer an active student, and FERPA strictly limits the sharing of education records in such circumstances. No audit trail or disclosure author

ization has ever been provided. This constitutes a violation of 20 U.S.C. 1232g and 5 U.S.C. 552a. 4. Improper Capitalization and Lack of Disclosure : My Master Promissory Note ( MPN ) specifies that each loan is enforceable only when accompanied by full loan disclosures, including repayment schedules and itemized accounting. I never received such disclosures for the subsequent loans or interest charges applied after graduation. This violates 34 CFR 685.205.

5. No Permissible Purpose for Continued Reporting : Credit reporting and debt collection after my graduation and without legal authority or validation violates 15 U.S.C. 1681b and 1681e ( b ). The accounts have since been deleted from my credit report due to my prior dispute, confirming their invalidity. 
XXXX. Blanket Reporting and Data Sharing : Aidvantage continued to report and collect based on blanket data sharing without verifying the individual legal status of my account. This constitutes inaccurate and unauthorized data furnishing under the FCRA. 
XXXX. Deferment Status Can not Be Substantiated : If a deferment was applied after graduation, I was never provided documentation, approval letters, or an explanation of interest accrual. No written request was submitted by me, nor have Aidvantage or XXXX provided any evidence of lawful deferment eligibility under 34 CFR 685.204. Therefore, any continued servicing, interest accrual, or transfer activity during that period is unsubstantiated and must be reversed.

8. Missing Servicing History and Default Notification : After attending several institutions between XXXX and XXXX, I discontinued my education and was unaware of any ongoing loan activity. I was not contacted, notified of default, or provided any formal validation of loan status during that period. When I returned to school later, I discovered that my loans had entered default status and were now serviced by XXXX, despite no evidence of servicing transfer, borrower communications, or re-certification. This unexplained servicing activity violates multiple consumer protection statutes and calls into question the enforceability of the loan. 
XXXX. XXXX XXXX XXXX Data Privacy Context ( Public Interest ) : The broader issue of federal data sharing, privacy violations, and unauthorized use of personal identifiers under FERPA and the Privacy Act remains under federal scrutiny, especially as it relates to contractors, automated data processing, and commercial misuse. I include this to emphasize the serious and emerging risk to borrowers when contractors like Aidvantage manage sensitive personal data without transparency or oversight. 
XXXX. Reinsertion Warning and Prior Deletion : These accounts have already been deleted from my credit reports following a previous dispute. Their removal confirms the lack of proper validation. Any attempt to reinsert these accounts into the consumer reporting system, without full legal justification and written notice to me, would constitute a violation of 15 U.S.C. 1681i ( a ) ( 5 ) ( B ) of the FCRA.

11. Corrupted Loan Record Data : Several of the loan history records provided by Aidvantage contain incomplete or
corrupted data, represented as XXXX XXXX XXXX XXXX XXXX XXXX XXXXn place of dates or figures. This raises serious concerns about the integrity of the loan records and violates the data accuracy standards under 15 U.S.C. 1681e ( b ).

Requested Action : I am demanding a full discharge of all loans associated with the disputed account due to : - Invalid servicing history ( Navient misconduct ) - Unauthorized data access and transfer - Improper interest capitalization - Lack of legal standing to enforce repayment Additionally, I request a full federal audit of the loans history, including all communications between servicers, the Department of Education, and any school that may have been contacted after I graduated. If Aidvantage can not produce all authorizations, certifications, and lawful justifications for their actions, this loan must be discharged in its entirety. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation