As you may know, the federal government partners with private companies to handle student loans for them. These loan servicers are responsible for payments and managing the loans. As of January 2022, there are seven companies under contract. One of the newer companies to get this responsibility is Maximus Federal Services.
What is Maximus Federal Services?
While Maximus may seem like a new player, they have been working with the government for a while now. Back then, their focus was only on [collections](https://thecollegeinvestor.com/35099/maximus-federal-student-loans/#:~:text=They are one of the,for defaulted federal student loans.), but a new initiative gave them more responsibilities. Along with four other companies, Maximus gained the right to service federal student loans.
The company has been in existence since 1975, with its main headquarters in Virginia. While it has worked primarily in the U.S., its services have also extended to other countries. They have helped in human services and health operations globally. Some of the countries they’ve worked with include Saudi Arabia, Australia, Canada, and the United Kingdom.
Part of the company that handles federal student loans is a subsidiary of this organization. They began a partnership with the Department of Education in 2013. From collections, they acquired a servicer role in mid-2020.
Maximus Federal Services primarily focused on delinquent loans as a collections agency. They were then given more responsibility following Navient’s release from their contract. Following this, all of Maximus’s student loan operations went under the name of Aidvantage.
What to Expect with Maximus
A call from Maximus isn’t what you’d want to hear because of their history as collections agents. As one of the five new companies handling loans, they will be a part of the government’s NextGen platform. This project aims to consolidate different loan servicers into one accessible location.
Even with the new responsibilities, the company still puts a substantial focus on collections. Apart from the contracts that moved from Navient, it’s not known if the government will assign more new loans under them.
If your loan was from Navient or another company no longer contracted with the government, you’ll receive a notification. It will provide details on setting up payments with the new servicer and other important information.
If you happen to be contacted by Maximus because you have defaulted on your loan, the best action is to confirm that you’re calling the right person. Being in that state is a big deal, and collections don’t often call until you’re at least 270 days defaulted.
If there is a confirmation after you’ve called their official phone number, you have to negotiate a repayment option or face dire consequences.
Even with its past, Maximus has responsive customer service. Their attentiveness in their previous role may also translate to better experiences with loans. Despite this, only time will tell if newer loans will fall under them or the new NextGen platform.