Consumer complaint received 2025-11-10 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Maximus Federal Services, Inc.
State: CA

Complaint narrative:
FEDERAL DATABASE PROVES PAYMENT MISALLOCATION The National Student Loan Data System ( NSLDS ) - the U.S. Department of Education 's official database - proves Aidvantage collected {$3200.00} in autopay payments from me but applied {$0.00} to four loans totaling {$58000.00}, then reported false delinquency to credit bureaus.

IRREFUTABLE EVIDENCE : XX/XX/XXXX : I enrolled in autopay for federal loans in account XXXX. Received written confirmation : " We have set up your automatic payment of {$400.00} per month for your Federal Direct Loans. '' XXXX XXXX : Made 8 consecutive successful autopay payments : XX/XX/XXXX : {$400.00} XX/XX/XXXX : {$400.00} XX/XX/XXXX : {$400.00} XX/XX/XXXX : {$400.00} XX/XX/XXXX : {$400.00} XX/XX/XXXX : {$400.00} XX/XX/XXXX : {$400.00} XX/XX/XXXX : {$400.00} TOTAL PAID : {$3200.00} XX/XX/XXXX : Credit monitoring alerted me to delinquency reporting. Investigation revealed shocking truth.

NSLDS FEDERAL DATABASE PROOF ( as of XX/XX/XXXX ) : Four loans show ZERO payments despite my 8 months of autopay : Loan originated XX/XX/XXXX ( {$20000.00} ) : Cumulative Payment Amount : {$0.00} Loan originated XX/XX/XXXX ( {$20000.00} ) : Cumulative Payment Amount : {$0.00} Loan originated XX/XX/XXXX ( {$10000.00} ) : Cumulative Payment Amount : {$0.00} Loan originated XX/XX/XXXX ( {$6800.00} ) : Cumulative Payment Amount : {$0.00} All four show " Most Recent Payment Effective Date : [ BLANK ] '' - proving NO payments ever applied.

Meanwhile, NSLDS shows OTHER loans in same account received payments ( {$160.00}, {$88.00}, {$430.00}, {$190.00} ), proving Aidvantage 's payment processing system worked for certain loans but systematically failed to apply payments to these four loans. The mathematical impossibility is irrefutable : Aidvantage can not simultaneously apply and not apply the same payments.

TRIANGULATED PROOF FROM THREE INDEPENDENT SOURCES : Three separate data systems confirm systematic payment misallocation : SOURCE 1 - NSLDS Federal Database ( Exhibit A ) : Loan XXXX, XXXX, XXXX, XXXX : Cumulative Payment Amount = {$0.00} All show " Most Recent Payment Effective Date : [ BLANK ] '' Federal government 's official student loan database SOURCE XXXX - Aidvantage AllLoans.csv ( Exhibit XXXX ) : Loans XXXX through XXXX, XXXX, XXXX : Monthly PAYMENT entries XXXX XXXX Loans XXXX, XXXX, XXXX, XXXX : ZERO payment entries in entire file Aidvantage 's loan-by-loan payment processing records SOURCE 3 - Aidvantage ByTransaction.csv ( Exhibit A-3 ) : Shows {$3200.00} in autopay payments collected ( 7 payments {$400.00} + 2 {$400.00} ) Shows all four excluded loans EXIST in system ( disbursement records from XXXX ) Proves Aidvantage had constructive knowledge of all loans but systems failed to apply payments Aidvantage 's account-level transaction summary This triangulated evidence proves Aidvantage : - Had constructive knowledge of all loans ( disbursement records confirm existence in system ) - Successfully collected all payments ( transaction summary shows {$3200.00} received ) - Failed to apply payments to four loans ( loan-level records show systematic exclusion ) - Falsely reported delinquency ( credit reporting despite {$0.00} payment application ) Whether through negligence, defective data migration, or system failure, Aidvantage violated federal servicing regulations. Aidvantage 's own business records plus federal database confirmation provide irrefutable proof of systematic payment misallocation requiring immediate correction and regulatory intervention.

KEY FACTS PROVING SYSTEMATIC FAILURE : 1. All loans share same account number ( XXXX ), same servicer ( Aidvantage ), same loan type ( XXXX ), same borrower ( me ).

2. The ONLY difference : excluded loans originated XXXX during XXXX-to-Aidvantage transfer period ; included loans originated XXXX. 

3. Aidvantage secretly created " Billing Group 2 '' on XX/XX/XXXX, segregating these loans without notice. Aidvantage 's XX/XX/XXXX autopay confirmation letters list 13 specific loan IDs but deliberately exclude loans XXXX, XXXX, XXXX, XXXX without any notice that loans in the SAME ACCOUNT would require separate payment.

4. I received NO billing statements for excluded loans until XX/XX/XXXX - violation of 34 CFR 685.211 requiring advance statements.

5. XX/XX/XXXX : A

idvantage improperly capitalized {$6800.00} interest during active repayment - violation of 34 CFR 685.202 ( b ). PATTERN OF VIOLATIONS : This isn't isolated error. This appears to be a systemic issue affecting a class of similarly situated borrowers transferred from XXXX to Aidvantage during XXXX. These violations occurred : 10 months AFTER DOE fined Aidvantage $ XXXX for billing failures affecting XXXX borrowers ( XX/XX/XXXX ) 9 months AFTER Bodor v. Maximus class action settlement for debt collection violations ( XX/XX/XXXX ) 2 months AFTER CFPB banned XXXX  with $ XXXX penalty for IDENTICAL violations : payment misallocation, billing failures, false credit reporting ( XX/XX/XXXX ) DURING CFPB supervision period where XX/XX/XXXX Supervisory Highlights documented widespread autopay violations including " falsely telling borrowers they're ineligible for autopay '' and " deceptive billing statements '' CFPB 2024 Student Loan Ombudsman Report documented XXXX complaints ( highest volume ever ) with " errors with billing and auto pay '' identified as persistent problem.

The fact that these violations continued 10 months after a $ XXXX penalty and replicate the exact conduct that resulted in XXXX XXXX permanent ban suggests a pattern or practice of violations requiring enforcement action beyond individual complaint resolution.

LAWS VIOLATED : 1. 20 U.S.C. 1087e - Improper payment allocation ( applied {$0.00} to 4 loans while applying 100 % to others ) 2. 15 U.S.C. 1681s-2 ( a ) - FCRA : Reporting false delinquency on loans that received {$0.00} in payments 3. 12 CFR 1005.10 - Regulation E : Modified autopay coverage without required notice 4. 34 CFR 685.211 - Failed to send billing statements for 7 months 5. 34 CFR 685.202 ( b ) - Illegally capitalized interest during repayment 6. 12 U.S.C. 5536 - UDAAP : Unfair practices causing unavoidable substantial injury DOCUMENTED HARM : Direct Financial : $ XXXX manufactured delinquency, {$6800.00} improper capitalization Credit Damage : 7-year FCRA impact affecting mortgage, auto, employment, insurance rates Immediate Impact : Can not refinance mortgage, denied credit increases Time and Stress : 8 months investigating Aidvantage 's errors REQUEST FOR SUPERVISORY INVESTIGATION : I performed every obligation. Aidvantage 's federal database records prove their systems collected my money but failed to apply it to four loans totaling {$58000.00}. Whether through negligence, system failure, or defective data migration from the XXXX transfer, these violations of federal servicing regulations require immediate correction and regulatory intervention. 

Given the pattern of violations identical to those that resulted in XXXXXXXX XXXX  permanent servicing ban, I request investigation under CFPB 's Supervisory Authority to determine whether Aidvantage 's conduct warrants similar enforcement action. Federal Student Aid servicer performance metrics should reflect these violations when evaluating contract compliance.

Time is critical. Every day of continued false delinquency reporting constitutes a new FCRA violation with statutory damages of $ XXXX {$1000.00} per occurrence. 

EVIDENCE PROVIDED : TRIANGULATED SMOKING XXXX PROOF : - Exhibit A : XXXX XXXX XXXX ( proves {$0.00} applied to XXXX loans ) - Exhibit A-2 : Aidvantage AllLoans.csv ( proves payments went only to certain loans ) - Exhibit A-3 : Aidvantage XXXX ( proves {$3200.00} collected AND excluded loans exist in system ) SUPPORTING EVIDENCE : - Exhibit B : XX/XX/XXXX statement showing {$0.00} lifetime payments- Exhibits C & D : XXXX autopay letters ( inadequate disclosure ) - Exhibit E : Payment history detail ( 8 successful payments ) - Exhibit F : XX/XX/XXXX statement ( excluded loans not shown in billing ) - Exhibit G : Credit alert ( false delinquency reported XX/XX/XXXX ) - Complete billing statement history ( XXXX XXXX )

Company response to consumer: Closed with explanation