Student loan -- Dealing with your lender or servicer -- Complaint #5755775

Complaint Overview

Complaint ID: 5755775

Company: Maximus Federal Services, INC.

Product: Student loan

Sub-Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Sub-Issue: Received bad information about your loan

State: Virginia

ZIP Code: 201XX

Date Received: 2022-07-10T12:00:00-05:00

Date Sent to Company: 2022-07-10T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

AidVantage denied my federal loan refund which is authorized by the CARES Act -- On XX/XX/XXXX, I called AidVantage to request a refund of the federal loan payments I made during the pandemic, but according to AidVantage, my request has been denied by the Department of Education. I requested funds that I paid from XX/XX/XXXX- XX/XX/XXXX in the amount of {$5700.00}. AidVantage did not provide me with a clear explanation for the denial, and to date, I have not received my refund as promised despite multiple phone calls with AidVantage representatives. The AidVantage representative I spoke with on XX/XX/XXXX initiated my refund request without an issue, and per her guidance, I called again on XX/XX/XXXX to check the status. On XX/XX/XXXX, I was informed that the Department of Treasury was approving my refund and I should expect to see the funds in my checking account within XXXX weeks. However, I still hadn't received my funds. I called AidVantage again on XX/XX/XXXX ( spoke with XXXX ) and was informed that " my request did not go through the Department of Education. '' XXXX told me that refund amounts about {$3000.00} need additional approval and somehow my request was denied, although she could not relay the issue to me. Her explanations were rather vague. XXXX said she escalated my case for reconsideration. A bit of background - I continued to pay my loan payments throughout the entire pandemic, XX/XX/XXXX- XX/XX/XXXX, despite not being required to make payments. I wanted to take advantage of XXXX interest ; however, given the continued payments extensions, a need for my money, and uncertainty from a political perspective about student loans, I requested a refund. Also, I have a perfect history of paying my federal student loans on time since summer XXXX, so I do not understand why AidVantage is holding up my refund. I'm afraid that AidVantage is imposing their own rules for requested loan refunds, particularly for the extra approval hoops required for refunds above {$3000.00}. I am unaware that the CARES Act set any upper bound for loan amounts. I understood that any payments, despite the amount, are eligible for a refund. Additionally, AidVantage has not provided me with any written documentation/confirmation of initiating the refund which is also a concern since there is a lack of a paper trail. Thank you in advance for your assistance! I hope that other folks are not in my situation!

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This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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