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Stay Clear From Dangerous Blacklisted Companies Like Aidvantage That Have Been Stealing Millions From Students

Have you ever heard someone say something negative about student loans? Yes, when it comes to online scams, it’s true. Student loans aren’t always a blessing; they can sometimes cost you millions and billions. 

Internet scams are rising and costing victims hundreds and thousands of dollars through Internet services or software with Internet connectivity to defraud victims or otherwise take advantage of them, referred to as Internet fraud. Thanks to the growing power of the internet, digitalization, and social media, it has never been this easy to find so many online scam victims at once. 

According to the FBI’s Internet Crime Report, the FBI Internet Crime Complaint Center received 351,936 complaints of internet crimes in 2018, resulting in damages above $2.7 billion. According to a 2017 Federal Trade Commission research, anyone using an internet-connected device can potentially become a victim of an internet scam. 

In fact, the number of student loan scams increased, perhaps due to the pandemic. It provided scammers with increased opportunities to go after borrowers, which has hurt finances for billions. Insane! 

We do not wish you and your loved ones to unplug from wifi, but we expect everyone to stay safe in this growing world of the internet. So, familiarize yourself with Aidvantage, one of the seven companies that service federal student loans by collecting and tracking payments. 

According to the Student Borrower Protection Center, Aidvantage presently manages loans for more than 13 million borrowers with a combined $449 billion in aidvantage student loan debt. Unfortunately, the company has been blacklisted due to growing scam cases.

Wondering how it got blacklisted and how much did they steal? This article is all about it. Continue reading!

Aidvantage - Company Overview

AidVantage logo

The Coronavirus Pandemic has affected all of us. Even two years after the outbreak, the majority of student loan borrowers stated they were not ready to begin payments. This is where student loan providers and companies like Aidvantage came in! 

Now, what is Aidvantage? Let us be your guide.

If you are or were a federal student loans receiver, you may have received a notification that your loans are being transferred to a new loan servicer. It is because one of the largest federal loan servicers, Navient, ended its contract with the federal government in 2021. Navient ended its contract with the U.S. Department of Education to manage the accounts of federal student loan borrowers. 

The department reported that it would transfer 5.6 million accounts to Aidvantage, which Maximus Education owned. To make it easier for debtors switching to Aidvantage, the new business hired former Navient staff members. We know it sounds great, but after one discovers the number of scammers Aidvantage came with, it ruins everything. 

Thus, the Department of Education selected Aidvantage, a for-profit business, to take over Navient’s collection of payments for federal student loans. Navient does not own it; it is a division of Maximus Education, LLC. Aidvantage is among the seven federal student loan servicers with whom the department has a contract to administer its loan portfolio.

Student Loans on Chalkboard

Let’s talk about the responsibilities and duties of the company. It includes assisting people with repayment plan enrollment, using deferments and forbearances to postpone payments, and monitoring progress toward canceling income-driven repayment plans.

Moreover, Aidvantage serviced Direct Loans, PLUS Loans, and Stafford Loans that the federal government owns. However, private student loans and Federal Family Education Loans held by guaranty organizations continued to be serviced by Navient.

Is Aidvantage a Legit Company or a Scam?

You may be wondering, is Aidvantage legitmate? Aidvantage is a complete and total rip-off. While there are many legal student loan service providers out there that people can trust, many others are deemed scammers for various reasons, like Aidvantage, and should be avoided if you want to keep your funds safe. 

While millions of borrowers cheered at the notion of no longer being serviced by Navient, the rise of Aidvantage put them in massive danger. As a new report from the SBPC and the Communications Workers of America outlines, evidence started piling up of problems related to the transfer from Navient to Aidvantage, aggravating the shocking number of abuses the company has already been accused of related to its role as the Department’s sole servicer for federal student loan borrowers in default over the past ten years. Unbelievable! 

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They have displayed many scam characteristics. For example, people complained they were stuck with Aidvantage until they paid off their loans ultimately. 

Now this hurts, right? Therefore, borrowers were recommended to take some actions before their servicing contracts expired. For example, either getting a copy from your servicer or downloading and saving your payment history from your online account. And adding your most recent address, phone number, and email to your Aidvantage contact number or information. 

They were told they’d be informed when a loan servicing transfer occurred, and the new servicer would handle their payments. The options and programs were the same across all service providers, but customer service varied. Otherwise, unless you take action to change services, you are bound to stay with Aidvantage. How sad!

Why Was Aidvantage Blacklisted?

Aidvantage was blacklisted due to so many reasons. For example, just within six months of taking over Navient’s portfolio of 5.6 million federal student loan accounts, it started running afoul of several borrowers. 

Scams

Would you believe that the Consumer Financial Bureau received around 100 complaints from federal student loan borrowers involving Aidvantage, such as receiving incorrect information about their loans and inaccurate account details? Also, there were many issues related to payment and different topics.

In addition to this, there was a case where an Aidvantage billing statement one borrower received requesting payment the following month. This took place in January, but the Biden administration extended the payment pause through May by then. Similarly, another complaint obtained from an Aidvantage customer featured the incorrect end date to the moratorium weeks after the administration announced the change. Woah! 

One prominent and most important aspect of companies worldwide is their customer service. However, according to reviews, Aidvantage offered no connection to the customer support department. There was no customer service team. According to clients, they are extremely rude, not helpful, and not available on weekends. People say that their customer service support doesn’t know the answers to basic questions.

If you are already in some sort of touch with this company, you should start staying away from them immediately!

Avoid

Why Isn’t it Recommended To Associate with Aidvantage?

The cost of professional financial aid counseling can exceed $1,000. Of course, charging for assistance or knowledge freely available elsewhere is not a fraud. However, a business is defrauding you if it fails to fulfill its promises.

If you’re unsure whether to pay a company for assistance in transferring financial aid, take a moment to consider the following: What is being offered? Will the service be worthwhile for you to pay for? Are the allegations too compelling to be true? Many say Aidvantage has approached them with statements like “We guarantee you’ll receive aid.” A company could claim it fulfilled its promise if you were offered student loans or a $200 scholarship. Is that worth  $1,000 or more?

Apart from this, scam companies like Aidvantage use statements like “Buy now or miss this opportunity.” Don’t give in to pressure tactics.  Remember that the “opportunity” is simply a chance to pay for knowledge you could acquire for free.

In fact, some scam companies attract people with words like “We can help you; please provide the number for your bank or credit card.” Please never divulge your bank or credit card information unless you are confident that the company you are giving it to is trustworthy. Your actions can expose you to identity theft; trust us; it can ruin you!

If you have been scammed through online, then contact us to get your money back!

Online Scams

What Do People Have To Say About Aidvantage?

Scammers have targeted applicants using various communication methods, including texting, emailing, social media messaging, calling, and leaving voicemails. 

An example of some of the fraudulent calls has been made public by the Federal Trade Commission such as; Kathleen Young, 30, received one of these calls a few weeks after applying for public service loan forgiveness, a government program that eliminates college loan debt for qualified workers. The person who answered the phone offered to assist Young in having her student loans forgiven. In Palo Alto, California, Young, an elementary school teacher, thought the contact was from the U.S. Department of Education regarding the public service initiative.

When the woman enrolled, she verified her social security number and provided her bank account details, promising that her loans would be consolidated and canceled after 60 payments (public service loan forgiveness requires 120 qualified payments). In roughly ten days, they informed her that her first payment would be deducted from her bank account.

But afterward, she noticed something didn’t feel right. She realized that even though the Education Department would never request that information over the phone, they obtained all of this information from her.

Advocacy

Nevertheless, luckily she could close the bank account she had given the business and send Guidance Alum an official request to cancel. Her Social Security number, which she will maintain for the rest of her life, is currently being monitored by several services. Lucky you, Young! 

Moreover, people have been experiencing a lot of false hope. For example, soon after the takeover, people started seeing a zero balance as soon as they logged into their Navient site. However, what’s funnier is that it turned out to be a lame and cruel joke because the balance was transferred to Aidvantage. Oops!

Are You an Aidvantage Victim? Here’s What To Do!

All borrowers whose loans were previously serviced by Navient should adopt the following two measures to protect themselves during and after the transition in light of Aidvantage borrowers’ failures and evidence of continued abuses. 

Also, borrowers must get documentation of the status of any pending applications or complaints and should file a complaint if those applications or complaints are not resolved or are complicated by the transfer.

Sentenced in Prison

Nevertheless, the number one step is to keep a complete copy of all records. You should keep a copy of your entire account records up to date in a safe location in case there are any lost records or disagreements with future services. Make copies of all payments and file Employment Certification Forms; this is particularly crucial if you apply for Public Service Loan Forgiveness. 

You should download your payment history and any other information on your online loan account that is available, as well as get in touch with Navient or Aidvantage as soon as you can to ask them to send you a complete copy of your loan records, as some loan records might not be easily accessible on your online account.

Another step is to Contact FundsTrace and join their effort to hold scammers like Aidvantage accountable. As they have taken over the accounts, Navient formerly managed, they are concerned about the allegations made by borrowers concerning Aidvantage. 

If you’ve experienced problems while interacting with Aidvantage, your story can help Funds Trace inform regulators and lawmakers as they oversee student loan servicers. They can assist you in making connections with resources and further support after you make a complaint. Also, they will keep you updated throughout about their work holding Aidvantage accountable. How amazing!

Losing Money

Can Student Loan Scams Be Avoided? Yes!

There is still a lot that we aren’t aware of when it comes to Aidvantage and their scam victims; however, to avoid scams like Aidvantage student loan scams, beware of companies that approach you or appear in your search engine ads. 

Even if you receive a letter or a call from a person claiming to be knowledgeable about your student loan information, such as how much you owe, it could be a scam. Borrowers will be well-positioned to manage any changes by being informed of any updates, keeping an eye out for, and reporting scammers.

If you are already a victim, contact Funds Trace, a recovery business equipped with industry specialists who can file your case, trace your scammer and recover your stolen funds in less than a month. They also ensure that the scammer restores 100% of the stolen funds to the victim.

So what are you waiting for? Get on this hassle-free student loan life today!

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