Consumer complaint received 2025-03-28 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Maximus Federal Services, Inc.
State: NY

Complaint narrative:
I am submitting this complaint regarding unauthorized interest accrual on my XXXX XXXX XXXX  enrolled in the SAVE ( Saving on a XXXX XXXX ) plan. Despite the Department of Education 's explicit guidance that loans under the SAVE plan should not accrue interest during the administrative forbearance period, Aidvantage has allowed interest to accrue on my account, resulting in an increase in my loan balance. 

Here is a summary of the issue and timeline : Department of Education Guidance : The Department of Education mandated that all borrowers enrolled in the SAVE plan be placed into an interest-free administrative forbearance beginning XX/XX/XXXX, due to ongoing legal challenges. During this period, no interest was supposed to accrue on loans. 

Aidvantage 's Actions : Aidvantage stated in their letter dated XX/XX/XXXX, that my loans were in a general forbearance with no interest accruing from XX/XX/XXXX, through XX/XX/XXXX. 

However, they claim that when I submitted a new Income-Driven Repayment ( IDR ) application on XX/XX/XXXX, my loans were moved into a " processing forbearance '' for up to 60 days. During this processing forbearance, Aidvantage allowed interest to accrue on my loans starting XX/XX/XXXX, despite my enrollment in the SAVE plan. 

When my application was not processed within the 60-day window, Aidvantage states that my account was moved back into a general forbearance effective XX/XX/XXXX, during which interest was set to 0 %. 

Impact : My loan balance increased from {$72000.00} ( as of XX/XX/XXXX ) to {$73000.00} as of nowa difference of {$1300.00} in unauthorized accrued interest. 

This interest accrual violates the Department of Educations directive that loans under the SAVE plan should not accrue interest during administrative forbearance. 

Attempts to Resolve : I have made over a dozen phone calls to Aidvantage since XX/XX/XXXX, totaling more than 12 hours of time spent trying to resolve this issue. 

During each call, I was promised a supervisor callback within 24-48 business hours, but no supervisor has ever followed up with me. 

I escalated this issue to the Consumer Financial Protection Bureau ( CFPB Complaint # XXXX ), but Aidvantage falsely reported to the CFPB that the issue was resolved when it was not. 

Why This Is a Problem : Aidvantages actions are inconsistent with federal regulations and Department of Education mandates regarding the SAVE plan. The Department explicitly stated that borrowers enrolled in SAVE should not accrue interest during administrative forbearance. By allowing interest to accrue during the processing forbearance period ( XX/XX/XXXX XX/XX/XXXX ), Aidvantage has violated these directives. 

Additionally : Their explanation in their XX/XX/XXXX letter does not align with federal guidance. 

Their failure to follow through on promised callbacks and their false reporting to the CFPB demonstrate systemic issues in their handling of borrower complaints.

What I Am Requesting : Immediate removal of the {$1300.00} in unauthorized accrued interest from my account. 

Restoration of my loan balance to {$72000.00} as it was in XX/XX/XXXX. 

Written confirmation from Aidvantage detailing these corrections and assurances that no further interest will accrue while my account remains under administrative forbearance as mandated by the Department of Education.

Accountability for Aidvantages false reporting to the CFPB and failure to provide adequate customer service. 

A formal investigation into whether Aidvantage is systematically violating Department of Education mandates regarding SAVE plan borrowers.

This issue has caused significant stress and wasted time due to Aidvantages noncompliance and lack of accountability. I request immediate action from both Aidvantage and federal authorities to resolve this matter fairly and ensure compliance with federal regulations moving forward. 

Sincerely, XXXX XXXX, XXXX

Company response to consumer: Closed with explanation