Student loans can be confusing and frustrating, especially when dealing with loan servicers. Many borrowers have recently experienced problems with AidVantage, a new student loan servicer that took over loans previously managed by Navient. This article will explain the situation in simple terms and provide guidance on how to handle issues with AidVantage.
Who is AidVantage?
AidVantage is the brand name used by Maximus, a federal contractor that became the world’s largest student loan company in late 2021. They now manage loans for nearly 13 million borrowers, totaling about $500 billion in student debt.
Key Facts:
- AidVantage took over Navient’s loan portfolio
- They manage loans for 13 million borrowers
- The total debt they handle is about $500 billion
Why Are Borrowers Concerned?
While many people were happy to no longer deal with Navient, which had a bad reputation, there are worries about AidVantage too. Some reasons for concern include:
- Problems during the transfer from Navient
- Past issues when Maximus handled defaulted loans
- Reports of ongoing problems from borrowers
What Problems Are Borrowers Facing?
Many borrowers have reported issues with AidVantage, including:
- Incorrect payment amounts: Some borrowers enrolled in income-driven repayment plans are being charged more than they should be.
- Application processing errors: AidVantage has failed to process some borrowers’ applications for programs like SAVE (Saving on a Valuable Education).
- Poor customer service: Borrowers report unhelpful or rude responses from AidVantage representatives.
- Lack of clear information: Many borrowers are confused about the status of their loans or applications.
A Real Borrower’s Experience
Let’s look at an example of the problems borrowers are facing:
Sarah’s Story
Sarah, a postdoctoral researcher, enrolled in the SAVE program when it was introduced. She expected her payments to be about $50 per month based on her income. However, she received a bill for over $200. When she called AidVantage, she discovered:
- Her initial application wasn’t processed correctly
- She was put on the wrong payment plan
- She had to reapply and pay a $5 fee
- She received confusing emails about her application status
- Customer service representatives gave her conflicting information
Sarah’s experience shows how frustrating and confusing dealing with AidVantage can be for many borrowers.
How to Protect Yourself as a Borrower
If your loans were transferred to AidVantage, here are some steps you can take to protect yourself:
1. Update Your Contact Information
Why it’s important: AidVantage will send you important notices about your loans. You need to make sure they can reach you.
How to do it:
- Log into your online loan account
- Check that your address, phone number, and email are correct
- If anything has changed, update it right away
- You can also call AidVantage to update your information
2. Keep Copies of All Your Loan Records
Why it’s important: If there are any problems or disputes in the future, you’ll need proof of your loan history.
How to do it:
- Download your payment history from your online account
- Save copies of any forms you’ve submitted, especially if you’re pursuing Public Service Loan Forgiveness
- Contact AidVantage and ask for a complete copy of your loan records
- Store these documents in a safe place, both digitally and in hard copy
3. File a Complaint if You Have Problems
Why it’s important: AidVantage is required to help borrowers and keep accurate records. If they’re not doing their job, you need to report it.
Where to file complaints:
- U.S. Department of Education
- Consumer Financial Protection Bureau (CFPB)
- Your state’s attorney general
What to include in your complaint:
- A clear description of the problem
- Dates of any phone calls or emails
- Names of representatives you spoke with
- Copies of relevant documents
4. Share Your Story
Why it’s important: Your experience can help others and inform policymakers about problems with student loan servicers.
How to share:
- Visit the Student Borrower Protection Center website
- Use their contact form to tell your story
- They can’t provide legal help, but they can connect you with resources
Common Issues and How to Address Them
Incorrect Payment Amounts
Problem: Your bill is higher than it should be based on your income.
What to do:
- Double-check your income-driven repayment plan application
- Call AidVantage and ask for an explanation
- If they can’t help, file a complaint with the Department of Education
Application Processing Errors
Problem: Your application for a repayment plan or forgiveness program wasn’t processed correctly.
What to do:
- Keep copies of all application materials
- Follow up with AidVantage regularly on the status
- If they claim you never applied, send proof and file a complaint
Poor Customer Service
Problem: AidVantage representatives are unhelpful or rude.
What to do:
- Take notes during all phone calls, including the representative’s name
- Ask to speak to a supervisor if you’re not getting help
- File a complaint detailing the poor service
Lack of Clear Information
Problem: You’re confused about the status of your loans or applications.
What to do:
- Ask AidVantage for written explanations of your loan status
- Use the Department of Education’s loan simulator to double-check payment estimates
- File a complaint if AidVantage won’t provide clear information
What to Do If You Can’t Afford Your Payments
If you’re struggling to make your loan payments, here are some steps to take:
- Apply for an income-driven repayment plan: These plans base your payments on your income and family size.
- Consider deferment or forbearance: These options temporarily pause your payments, but interest may still accrue.
- Look into loan forgiveness programs: Some professions, like teaching or public service, may qualify for loan forgiveness.
- Avoid default at all costs: Defaulting on your loans can have serious consequences for your credit and financial future.
- Seek help from a non-profit credit counselor: They can provide advice on managing your overall financial situation.
The Importance of Staying Informed
Student loan policies and services can change. To stay on top of your loans:
- Read all communications from your loan servicer: Even if it looks like junk mail, it could be important.
- Keep your contact information up to date: This ensures you receive all important notices.
- Check your loan details regularly: Log into your StudentAid.gov account to review your loan information.
- Stay informed about policy changes: Follow reputable sources for student loan news.
Conclusion
Dealing with student loan servicers like AidVantage can be challenging, but you have rights as a borrower. By staying informed, keeping good records, and speaking up when there are problems, you can protect yourself and your financial future.
Remember:
- Update your contact information
- Keep copies of all loan records
- File complaints if you experience issues
- Share your story to help others
- Stay informed about your loans and repayment options
By following these steps, you’ll be better equipped to handle any issues that arise with AidVantage or any other student loan servicer.