Consumer complaint received 2025-04-21 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: GA

Complaint narrative:
Subject : Complaint Regarding Outstanding Federal Student Loans from XXXX XXXX and XXXX XXXX University Dear Consumer Financial Protection Bureau, I hope this letter finds you well. I am writing to formally file a complaint concerning my federal student loans associated with both XXXX XXXX ( XXXX  ) and XXXX XXXX University ( XXXX ), which are still showing outstanding balances despite the recent announcements about loan forgiveness under the borrower defense to repayment regulations. 

In XX/XX/XXXX, the U.S. Department of Education announced it would forgive {$71.00} XXXX in federal student loan debt, holding XXXX liable for {$24.00} XXXX. This decision was based on the recognition of deceptive practices that misled students about the value of their degrees and the quality of education provided. Furthermore, XXXX has faced similar scrutiny due to its recruitment tactics and promises that were not fulfilled, leading many graduates, including myself, to seek relief through the same borrower defense process. 

As a borrower who attended both XXXX and XXXX, I was hopeful that my loans would be included in this forgiveness initiative. However, upon reviewing my loan status, I found that my balances remain unchanged, which has caused substantial financial and emotional distress. This situation is further exacerbated by my repeated attempts to contact my loan servicer, where I have received inadequate responses and no clear guidance on how to address my concerns. Also, I received communications stating the discharge of loans if the lawsuit was successful. So far, I have not received the dismal from the account balance. 

Not only do I find it frustrating to witness the federal government 's acknowledgment of wrongdoing by these institutions, but I am also deeply troubled that my loans do not reflect this action. The lingering balances are a constant reminder of the financial burden I believed would be alleviated. 

Given this context, I respectfully request your assistance in resolving this matter. Borrowers like me must receive timely and accurate information regarding our rights under the borrower defense to repayment regulations. Additionally, I urge the CFPB to take action to ensure that loan services adhere to federal directives and correctly process the discharge of loans for affected students from both XXXX  and XXXX without unnecessary delays. 

Also, I would like to bring to the attention potential violations of laws that XXXX have occurred at XXXX University and XXXX XXXX University ( XXXX ) regarding their marketing practices and the educational services they provide to students, which include : Under the Higher Education Act of 1965 ( HEA ), schools are required to adhere to specific regulations that ensure transparency and fairness in their student recruitment practices. The " XXXX XXXX to Repayment ( BDR ) '' provision, established under the HEA, protects borrowers from institutions that mislead them about their programs or the value of their degrees. Students who have been misled or those who suffered financial harm as a result are eligible to seek relief under this law. 

Additionally, the specific regulations defined in 34 CFR 685.206 outline the BDR process and the criteria for eligibility. XXXX and XXXX made false representations about their programs, services, and job placement rates, students have valid claims for loan forgiveness based on these regulations. 

Furthermore, the " Federal Student Aid ( FSA ) Guidelines '' issued by the U.S. Department of Education stipulate that educational institutions must provide clear and accurate information regarding their programs. Any misrepresentations could be grounds for students to pursue claims under the BDR provisions.

Moreover, various " consumer protection laws '' at both the federal and state levels protect students from deceptive practices. These laws require educational institutions to be forthright in their marketing and communications. If either XXXX or XXXX misrepresented critical aspects of their educational offerings, they were held accountable under these laws. 

I urge the appropriate regulatory bodies to thoroughly investigate these matters to ensure that students who have been affected are granted the relief they deserve. 

Thank you for your attention to this pressing matter. I look forward to your prompt response and any guidance you can provide to help rectify this situation.

Company response to consumer: Closed with explanation