Aidvantage Student Loans: Forgiveness & Repayment Options

From income-driven repayment plans to student loan forgiveness and discharge programs, Aidvantage provides a range of options to help make repayment more manageable, and potentially even reduce or get rid of your remaining student loan balance. We’ll cover what options you might have based on your income, employment, and more so you don’t get stuck paying more than you have to.

First off, Aidvantage is a student loan servicer specializing in managing federal student loans. Aidvantage is not a lender. Instead, it serves as a conduit between borrowers and the Department of Education, making sure loan repayments are handled efficiently. Its primary role is managing borrowers’ accounts, correctly processing payments, and offering guidance on repayment options.

Related: Naivent Transferred to Aidvantage

Role as a Loan Servicer

Loan servicers manage loan repayment on behalf of lenders. They handle administrative tasks like processing payments, maintaining records, and providing customer service. Their primary responsibility is to efficiently manage loans while safeguarding the interests of both borrowers and lenders.

Related: Is Nelnet and Navient the Same?

Is Aidvantage a Federal or Private Loan Servicer?

Aidvantage is a federal loan servicer approved by Federal Student Aid (FSA), a division of the Department of Education. This official status enables it to manage Direct loans and Federal Family Education Loan Program (FFELP) Loans on behalf of the FSA.

Aidvantage does not service or lend private student loans.

Related: Can you settle Federal Loans?

Yes, Aidvantage is a legitimate company. As a division of Maximus, it is one of the nine approved federal student loan servicers. Borrowers can trust Aidvantage to manage their federal student loan debt effectively and in compliance.

Benefits of Choosing Aidvantage

• Improved Customer Service: There are high expectations that Aidvantage will offer more robust customer support compared to Navient, which faced legal and regulatory challenges due to its loan management practices.

• Continued Federal Benefits: With Aidvantage, you will continue to have access to federal benefits like income-driven repayment plans and loan forgiveness programs.

• Smooth Transition Guarantee: Aidvantage aims to ensure a smooth transition process for borrowers, without affecting the existing terms or conditions of the loans.

Aidvantage student loans are eligible for the following student loan forgiveness programs:

• Income-Driven Repayment Forgiveness: Extend your repayment term to 20 or 25 years. After your final payment, any leftover loan balance gets forgiven. Plus, good news! Aidvantage loans are eligible for the Education Department’s newly launched IDR Waiver. This program grants you credit toward IDR Forgiveness for the time in any student loan repayment plan, specific deferment periods before 2013, and years in forbearance, including the recent three-year pandemic-related payment pause.

• Public Service Loan Forgiveness (PSLF): Serving the public? If you work full-time for a government or nonprofit organization, you could have your Direct Loan balance cleared after 120 qualifying payments. For those with FFELP Loans, consider consolidating them to become eligible for PSLF. Bonus: Payments made during full-time public service may count towards forgiveness under a limited PSLF waiver until Oct. 31, 2022.

• Teacher Loan Forgiveness: Educators, take note! If you’re teaching in a Title I school, you could wipe out up to $18,500 of your federal student loan debt after just five years of service.

• Total and Permanent Disability Discharge: Should you face medical issues that prevent you from working, as confirmed by a medical doctor, the SSA, or the VA, your entire student loan debt could be eligible for cancellation.

• Closed School Discharge: Did your school close its doors? If you were enrolled when it happened, or it closed shortly after you left, you might be eligible to have your student loan balance wiped out.

Originally, Aidvantage student loans were on the list for potential relief under President Biden’s student loan debt relief plan. This initiative aimed to erase millions of Americans’ partial or full loan balances. But the Supreme Court struck that plan down last summer.

PSLF Eligibility

To qualify for PSLF, you must meet these criteria:

• Have Direct Loans

• Work full-time for a qualifying employer (e.g., government or nonprofit)

• Make 120 qualifying payments

• Submit the Employment Certification Form (ECF) yearly or when changing employers

Income-Driven Repayment Forgiveness Eligibility

To be eligible, you must:

• Be enrolled in an income-driven repayment plan

• Make qualifying payments for 20 or 25 years

• Have a remaining loan balance after the final payment, which will then be forgiven

Applying for PSLF

1. Enroll in a qualifying repayment plan

2. Secure full-time employment with a qualifying employer

3. Make 120 qualifying payments

4. Annually submit the ECF or do so when changing employers

5. Apply for PSLF through studentaid.gov, using the PSLF application form

Applying for Income-Driven Repayment Forgiveness

1. Enroll in an income-driven repayment plan

2. Make qualifying payments for the required number of years

3. After the final payment, any remaining loan balance will be forgiven

Required Documents

• For PSLF, submit the ECF yearly or when you change employers

• For Income-Driven Repayment Forgiveness, provide proof of income when enrolling in the plan.

Aidvantage offers a range of repayment plans to accommodate the unique circumstances of federal student loan borrowers. Below is a table that outlines these options, from fixed-term plans to more flexible, income-driven alternatives.

• Standard and Extended Plans: You can choose a Standard 10-year plan with fixed payments or an Extended 25-year plan.

• Graduated and Income-Driven Plans: For those looking for more flexible options, Aidvantage offers Graduated repayment plans and several Income-Driven Repayment (IDR) plans like the Saving on a Valuable Education (SAVE) Plan, Pay As You Earn (PAYE), and Income-Based Repayment (IBR).

Related: New Income-Driven Repayment Plan

Additional Payment Features

• Autopay Benefits: To streamline payments, consider signing up for autopay. This enables automatic monthly deductions from your bank account and reduces your interest rate by 0.25%.

• Postponing Payments: If you face financial hardship, Aidvantage can guide you through applying for deferments or forbearances.

No, you are not necessarily stuck with Aidvantage until your student loans are paid off. While Aidvantage may be the current provider of your student loans, it is important to remember that you have the option to explore refinancing or loan forgiveness options if you qualify. It is advisable to thoroughly research and compare these options to find the one that best suits your needs.

Aidvantage Consolidation and Refinance Options

Consolidating your loans through Aidvantage can simplify your monthly payments and may even lower your interest rate.

• Federal Loan Consolidation: To start federal loan consolidation, apply online at StudentAid.gov. You can select the loans to consolidate and choose a repayment plan during the application. Aidvantage will then manage your loans as a whole and will ensure timely payments.

• Interest Rate Calculation: The interest rate for a consolidated loan is a weighted average of the interest rates on the loans being combined, rounded up to the nearest one-eighth of one percent.

• Private Loan Refinancing: If you’re considering refinancing with a private lender, know that you will lose federal benefits like income-driven repayment plans and loan forgiveness options. But student loan refinancing can lower your interest rate and adjust your repayment terms — especially if you have a good credit score.

How to Find Your Aidvantage Account Number

Looking for your Aidvantage account number? There are a few easy ways to find it:

1. Monthly Billing Statement: Check your most recent monthly billing statement. Your Aidvantage account number will be listed there.

2. Online Account: Log in to your account on the Aidvantage website. Once logged in, you’ll be able to see your account number displayed on your dashboard.

3. Customer Support: If you’re still having trouble finding your account number or need further help, please reach out to Aidvantage customer service for help.

Choose the method that’s most convenient for you, and you’ll have your account number quickly!

How to File a Complaint About Aidvantage

If you want to complain about Aidvantage customer service or file a complaint against Aidvantage as your student loan servicer, you have several options.

• Federal Student Aid Ombudsman: 877-557-2575 or by mail at U.S. Department of Education, FSA Ombudsman Group, P.O. Box 1843, Monticello, KY 42633

• FSA Feedback Center: You can submit a complaint to the Feedback Center after you’ve worked with the Ombudsman group.

• State Consumer Protection Office: You can file a complaint with your state’s consumer protection division, which is typically a subdivision of your state attorneys general office. That office is responsible for making sure you’re protected from fraud, deception, misrepresentations, and false promises.

• Consumer Financial Protection Bureau: If all else fails, you can also submit a complaint to the CFPB. They are a third-party government agency that helps consumers solve issues with financial products, including student loans.

How to Settle a Dispute with Aidvantage

If a complaint doesn’t help, you can contact the Federal Student Aid Ombudsman Group. This method should be used only as a last resort, says the federal student aid office. When you’re ready to reach out, here’s how to get in touch:

Phone: 877-557-2575

By mail: U.S. Department of Education

FSA Ombudsman Group

P.O. Box 1854

Monticello, KY 42633

You can also reach out to a student loan nonprofit such as The Institute of Student Loan Advisors, which provides free dispute resolution.

Is Aidvantage a Federal Student Loan?

Aidvantage is a federal loan servicer approved by Federal Student Aid (FSA), a division of the Department of Education. This official status enables it to manage Direct loans and Federal Family Education Loan Program (FFELP) Loans on behalf of the FSA. Aidvantage does not service or lend private student loans.

How can I stop paying my loans through Aidvantage?

If you wish to stop paying through Aidvantage, you will either need to move your loan to a new provider or receive student loan forgiveness. Your loan can be moved to a new loan servicer or a private lender. We recommend comparing rates before doing this.

Refinance your student loans:

If you’re considering refinancing with a private lender, know that you will lose federal benefits like income-driven repayment plans and loan forgiveness options. But student loan refinancing can lower your interest rate and adjust your repayment terms — especially if you have a good credit score.

Federal Loan Consolidation:

Consolidate with a new loan servicer by completing a consolidation application at StudentAid.gov.

Forgiveness:

Check to see if you are eligible for loan forgiveness here https://studentaid.gov/manage-loans/forgiveness-cancellation