Consumer complaint received 2025-01-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Need information about your loan balance or loan terms
Company: Maximus Federal Services, Inc.
State: NJ

Complaint narrative:
In XX/XX/year> ( CFPB ID : XXXX ) I asked why my SAVE application was not processed AND/OR PLACED IN FORBEARANCE WITH NO INTEREST ACCRUAL. On XX/XX/year>XXXX  - the company replied with the following : Thank you for reaching out to the CFPB with your concerns regarding your federal student loan account. We understand you are concerned that your newly consolidated loan has not been enrolled in the SAVE plan. You also stated that when you contacted Aidvantage we were unable to advise why the loan hasnt been enrolled in the plan. However, our records show that when you called Aidvantage on XX/XX/year> you were correctly advised that due to a Federal court issued injunction the U.S. Department of Education is prevented from implementing parts of the SAVE Plan and other IDR Plans. As advised on XX/XX/year>, we are unable to process the plan due to the court injunction. Youre welcome to call us at XXXX, with any questions you may have concerning this issue. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Given the updates made by the government, my application should have been placed on forbearance until new recertification amounts could have been made, which is what I stated in my previous complaint ( https : //www.ed.gov/higher-education/manage-your-loans/save-plan ) ; I believe Aidvantage intentionally did not place me in forbearance ( with no interest accrual after 60 days ), and am requesting for them to now follow up on the application that I submitted back in XX/XX/year>, to place me in general forbearance with no interest accrual. It has been over 60 days with interest accruing, and the SAVE application should now be in forbearance since I applied and it was never processed. The government states : As of XX/XX/scrub>XXXX XXXX borrowers may apply for the following IDR plans : Pay As You Earn ( PAYE ), SAVE ( previously known as REPAYE ), Income-Based Repayment ( IBR ), and Income-Contingent Repayment ( ICR ), if borrowers meet any plan specific eligibility requirements.. 

For borrowers who would prefer to make payments during this time -- such as borrowers pursuing PSLF or low-income borrowers who would owe no monthly payments -- enrolling in PAYE or ICR may be an option to consider. 

Borrowers are still permitted to apply for the SAVE plan ( previously known as REPAYE ), even though the court has enjoined some of the SAVE and other IDR plan provisions, including forgiveness. The Department is working with servicers and contractors to update their systems to align with the terms of the SAVE plan, based on the terms of the injunction. This process will take several months. Ultimately, the terms of the SAVE Plan and other IDR plans are subject to the outcome of ongoing litigation.

If servicers need time to process a borrowers IDR application, servicers will move the borrower into a processing forbearance for up to 60 days. Interest accrues during this short-term processing forbearance, and time in the processing forbearance that does provide IDR and PSLF credit. If the borrowers application is not processed by their servicer within 60 days, the borrower will be moved into a general forbearance that does not count toward PSLF or IDR until their application is processed. Interest will not accrue in this general forbearance.

Company response to consumer: Closed with explanation