Consumer complaint received 2025-08-24 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: TN

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXXXXXX XX/XX/XXXX Aidvantage ATTN : Credit Bureau Management XXXX XXXX XXXX XXXX, XXXX XXXXXXXX Subject : Formal Debt Validation, FERPA & Privacy Act Violation Dispute Demand for Student Loan Cancellation, Deletion, and Reimbursement Dear Aidvantage XXXX This letter serves as a formal dispute and demand for validation, cancellation, and reimbursement regarding the student loan account under my name : Account Number : [ XXXX ] I have reason to believe that my personal and financial data was mishandled, disclosed, and securitized without my authorization, constituting violations of FERPA ( 20 U.S.C. 1232g ), the Fair Credit Reporting Act ( 15 U.S.C. 1681 ), the Truth in Lending Act ( 15 U.S.C. 1666b ), and the Privacy Act of 1974 ( 5 U.S.C. 552a ).

1. Debt Validation Request Pursuant to my rights, I am requesting full debt validation of the alleged loan, including but not limited to : The original signed contract/note bearing my wet-ink signature ; A copy of the flow agreement showing how this debt was transferred, pooled, or securitized ; The trust or transfer/assignment contract showing ownership of the loan ; The bill of sale or purchase agreement showing legal chain of title ; Documentation proving that Aidvantage is the lawful holder/owner and has the right to collect or report this debt. 

Failure to provide this documentation within 30 days will be deemed an admission that no such documentation exists and that the debt is invalid.

2. FERPA Violations FERPA strictly prohibits disclosure of personally identifiable information from education records without my written consent. Reporting my student loan information to third-party credit bureaus and potential securitization of this debt occurred without my explicit authorization. This is a direct FERPA violation, and therefore, any tradelines reported to credit bureaus are unlawful and must be deleted.

3. Privacy Act of 1974 Violations The Privacy Act governs the collection, maintenance, and dissemination of personal information by federal agencies and their contractors. Any unauthorized release, misuse, or securitization of my personal and financial data violates this Act. Aidvantage, as a contractor of the Department of Education, is bound by these federal laws.

4. Illegal Account Balance Increases I have observed that my student loan account balance has been increasing without any prior notice or disclosure of calculation methods. This is unlawful under federal consumer protection and lending laws. Servicers are required to provide clear statements and notices regarding any changes in balances, interest, or fees. The absence of such notice constitutes illegal and deceptive reporting, further invalidating this debt.

5. Conflicting Notices Past Due vs. Discharge Authorization I recently received two contradictory notices from Aidvantage : A notice claiming I have a past due balance, and A notice stating that my loans are authorized to be discharged and/or forgiven.

These contradictory communications are confusing, misleading, and unlawful. If my loans are approved for discharge/forgiveness, there can be no past due balance. Your failure to reconcile these notices demonstrates severe negligence in account servicing, misrepresentation, and further violations of federal law.

6. Demands Based on the above, I am demanding the following remedies : 1. Immediate cancellation/discharge of the alleged student loan debt under FERPA and the Privacy Act ; 2. Full deletion of the tradeline from all consumer reporting agencies ( XXXX, XXXX, XXXX, XXXX ) ; 3. Reimbursement of all payments made toward this account due to the mishandling of my personal and financial information ; 4. Immediate written clarification on whether my account is officially in discharge/forgiveness status and the effective date ; 5. Written confirmation within 30 days of the actions taken to comply with this demand. 

Failure to comply will result in formal complaints to the U.S. Department of Education, the Federal Trade Commission ( FTC ), the Consumer Financial Protection Bureau ( CFPB ), and potential legal action for damages in the amount of {$1000.00} per violation plus actual damages under the FCRA, FERPA, and the Privacy Act. 

This letter is being sent in good faith, with the expectation of compliance under federal law. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation