A new bomb report claims that this student company misled student loan borrowers.
Here’s what you need to know – and what it means for your student loans.
A new report Published by the Communications Workers of America (CWA) and the Student Borrower Protection Center (SBPC), their search for the “largest student loan company in the world” revealed new evidence of “systemic mismanagement, failure and abuse.” The investigation claims that Maximus, which is a student loan service for 13 million federal student borrowers and operates under the name “Aidvantage”, is said to be doing the following:
- Student loan disbursement service. Student loan borrowers reported that they could not access their new Aidvantage Internet accounts, received inaccurate information when asked when federal student loan payments would be resumed, and that documents were missing when their previous student loans were transferred from loans.
- Unfair collection of student loans. Low-income student borrowers sue Maximus and claimed that Maximus violated the rights of student loan borrowers for their student loans in the event of default.
- Illegal payment of salaries and illegal confiscation of public benefits. Other lawsuits against Maximus allege that Maximus misappropriated salaries, social security, tax refunds and other public benefits for student loan borrowers who were in default.
(Biden to cancel $ 6.2 billion in student loans)
In response to their investigation, the CWA and SBPC launched AidvantageWatch, a project to highlight alleged misbehavior by Maximus and to ensure fair treatment of all student loan borrowers. Borrowers can visit AidvantageWatch online to share their experience with Maximus / Aidvantage and learn how to alert regulators and law enforcement officers if they encounter misleading or misleading behavior by a student loan company.
“This report contains a number of significant factual and contextual errors that characterize the work we do for the FSA, including inaccurate description of the number and nature of student loan service work and the false claim that we are student debt collectors. debt “, said Maximus spokeswoman Eileen Cassidy Rivera. “We are not.”
According to Rivera, Maximus disputes many of the allegations made in the report, including Maximus:
- should not be called a student loan service company, but a “government contractor providing back-office services to the government.”
- does not collect student loan debt and does not lay down rules governing when a student loan is in default; and
- does not set out the rules or policy for foreclosure or foreclosure on student loans in the event of default.
Maximus also denies involvement in “student loan disbursement”. “This is false,” Rivera said. “The 99 complaints submitted to the Consumer Finance Protection Bureau (CFPB), which are reported in the report, from more than 6.9 million student loan accounts, give an untrue and unfair picture of Aidvantage. Half of the complaints have nothing to do with Aidvantage or what is under Aidvantage control. None of the complaints indicate that Aidvantage is ready to repay the repayment on May 2. Most importantly, all complaints have been resolved. ”
(Biden could extend student loan deferral forever)
According to the report, Maximus has nearly $ 800 million in contracts with the US Department of Education. In addition to the Student Loan Service, the report claims that Maximus operates the Debt Management System, which is used by student loan borrowers in the event of default. Maximus also operates call centers that help student loan borrowers meet their obligations, known as the US Department of Education Default Resolution Team. Finally, through its role as a Business Process Provider for the Federal Student Aid Office, Maximus answers questions about student loans and student loan repayments.
(Biden could offer both student loan deferral extension and student loan cancellation this year)
Student Loans: How to File a Complaint Against Your Student Loan Service
Student loan borrowers should be treated fairly by the student loan service providers. This year, there is a good chance you will get a new student loan server. Several top student loan officers terminated their contracts with the US Department of Education at the end of last year. If you have been wronged by your student loan officer – the company that manages your student loans and collects student loan payments – then you can file a written complaint with at least one of the following:
- your student loan server
- the US Department of Education
- the Attorney General of your state
- Office of Consumer Financial Protection (CFPB)
- Federal Trade Commission (FTC)
(Student loan cancellation does not mean what you think it means)
Student loans: next steps
Federal student loan payments are scheduled to resume on May 1, 2022. It is possible that President Joe Biden will extend the student loan deferral again. However, there is no guarantee. Therefore, you need to prepare now for the repayment of the student loan repayment. It’s important to know all the best ways to pay off student loans faster and save money.
Here are some smart places to start: