Consumer complaint received 2025-04-14 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: NY

Complaint narrative:
I am writing to formally file a complaint regarding the mishandling of my federal student loan account, which was originally serviced by XXXX and later transferred to Aidvantage. The lack of communication and accountability from both parties has negatively impacted my credit and caused considerable confusion and stress. 

When I attended college, I took out federal student loans serviced by XXXX. I consistently made payments on time and maintained a good standing with my account. However, in XXXX, XXXX ceased servicing federal student loans. After this transition, I was no longer able to access my XXXX account, and I received no further communication regarding the status of my loan or its transfer to another servicer. 

In the fall of XXXX, during a routine credit check, I noticed that my student loan was now being reported under Aidvantage. I immediately contacted Aidvantage and provided my information, but they were unable to locate any account under my name. They advised me to contact Federal Student Aid ( FAFSA ), which confirmed that I did, in fact, have an account with Aidvantage. FAFSA informed me that I would need to contact Aidvantage again to resolve the matter. I did so, but once again, Aidvantage could not find my account. 

Fast forward to XX/XX/XXXX, XXXX noticing that my credit score had dropped by XXXX pointsI called Aidvantage again. According to my credit report, my account had been current through XX/XX/XXXX. However, by XXXX, it was marked as 90 days past due, which is not chronologically possible. To my surprise, Aidvantage was now able to locate my account. I explained the entire situation and was informed that they had been servicing my loan since XX/XX/XXXX. This was extremely concerning to me, as I had received no communication during that time to notify me of the transfer. 

When I asked why they couldnt find my account during my earlier calls in the fall, I was told repeatedly that they had sent communications via phone and email. However, I never received any such messages. The only communications I had with Aidvantage were ones that I initiated. It felt as though they were shifting the blame rather than acknowledging the issue.

After getting nowhere with the initial representative, I requested to speak with a supervisor. I once again explained the entire situation and asked if anything could be done to remedy the situation so that I would not be penalized for something outside of my control. The supervisor told me that Aidvantage does not charge late fees, and that the only increase in the loan amount was due to accrued interest. They were able to remove a pending {$200.00} payment so that my account would be brought current, although this did not reduce the balance of the loan.

I requested that the accrued interest be waived given the lack of communication and inability to access my account, but was told that Aidvantage could not do this, as they are only the loan servicer and not the loan owner. I was advised to contact FAFSA for any adjustments to interest. The representative also helped me regain access to my online account so that I could resume payments.

After this, I called FAFSA to inquire about having the interest removed. The first representative I spoke to stated that they do not handle financial aspects of loans and that only the servicerAidvantagecould address that matter. He remarked that it seemed like Aidvantage was mishandling my account, as evidenced by their earlier inability to locate it. He transferred me to another department that handles issues like mine.

The second representative I spoke to stated that Aidvantage does in fact own my loan and does have the authority to reduce or remove the accrued interest. She also told me that I could and should file a
formal complaint with the Department of Education via StudentAid.gov, as well as with the Consumer Financial Protection Bureau ( CFPB ). That is the purpose of this letter.

Upon conducting further research, I discovered that I am not alone. Many other former XXXX borrowers have experienced similar issuesonly learning of the transfer to Aidvantage through a credit check, rather than direct communication. I also found an article from the CFPB which details how XXXX was banned from servicing federal student loans and was ordered to pay {$120.00} XXXX for widespread lending failures ( https : //www.consumerfinance.gov/about-us/newsroom/XXXX ).

I have made every effort to resolve this matter responsibly and in good faith. I was unaware of the transfer, was denied access to my account for years, and was given conflicting information by the servicer. Despite finally resolving the account status, my credit score dropped XXXX points in less than a month and will take significant time to recover. This situation was entirely out of my control, and I should not be penalized for the lack of transparency and communication from XXXX and Aidvantage. 

I respectfully request that this matter be reviewed, and that appropriate corrective actions be taken, including the removal of accrued interest and a correction to my credit report.

Company response to consumer: Closed with explanation