EdFinancial Services: Everything You Need To Know (2024)

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EdFinancial Services is one of several loan servicers contracted by the federal government to manage billing for federal student loans.

Based in Knoxville, Tennessee, EdFinancial has been in the student loan business for over three decades and services loans for over five million borrowers as of August 2023.

If EdFinancial is your loan servicer, understanding what role the company plays in repayment is an important step in the student loan process.

What Is EdFinancial Services?

EdFinancial Services is a loan servicer that handles billing and account management for federal student loans. Federal loans are assigned to a loan servicer when disbursed.

If your loans are assigned to EdFinancial Services, the company handles all payment-related tasks, like setting up your repayment plan and answering questions about your balance.

Is EdFinancial Services Legit?

EdFinancial Services is a legitimate company registered in the Nationwide Multistate Licensing System (NMLS), a network that tracks state licenses for lenders and loan servicers.

In April 2023, the U.S. Department of Education’s Office of Federal Student Aid announced a loan servicing overhaul focusing on streamlining and improving customer service. EdFinancial Services is one of five loan servicers who won new loan service contracts as part of that loan servicing improvement initiative that will roll out in 2024.

The four other contracted loan servicers taking part in system upgrades are Central Research, Inc., Maximus Education LLC, Missouri Higher Education Loan Authority (MOHELA) and Nelnet Diversified Solutions.

Is EdFinancial Services a Federal Student Loan Lender?

EdFinancial Services doesn’t originate loans or lend money. Instead, it’s a third party that manages repayment logistics for federal student loans.

After loan funds are disbursed, EdFinancial Services manages the following tasks:

  • Accepting loan payments
  • Updating repayment plans
  • Processing applications for deferment or forbearance
  • Answering questions about your loan balance and payments
  • Delivering tax form 1098-E for the student loan interest payment tax deduction

How To Know If EdFinancial Is Your Servicer

Logging into your StudentAid.gov account and checking under the “My Loan Servicers” section is the easiest way to find your loan servicer. Calling the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243 is another way to find your servicer.

However, note that the loan servicer you have today might not be the one you have for your entire repayment. Sometimes, your loan servicer can change. When this happens, you’ll get notified by email or letter that your loans are moving. You’ll also get directions on how to manage your loans going forward.

Typically, you don’t get to choose your loan servicer. The only occasion you may have a choice is when consolidating your loans with a direct consolidation loan.

Can You Request More Student Loans Through EdFinancial?

No, EdFinancial student loans are federal student loans, and you have to fill out the Free Application for Federal Student Aid (FAFSA) to apply for federal student loans and grants.

Note that if you accept more federal loans, the loans could be assigned to a different servicer. Consolidating is one way to combine multiple loans into one loan with one servicer.

How To Contact EdFinancial Services

EdFinancial Services is open Monday through Friday. You can contact the company by phone at 1-855-337-6884 or by email, mail, fax and chat. Below are the hours of operation:

  • Monday: 8 a.m. to 9 p.m. EST
  • Tuesday and Wednesday: 8 a.m. to 8 p.m. EST
  • Thursday and Friday: 8 a.m. to 6 p.m. EST

How To File a Complaint Against EdFinancial

If you have a problem that customer service can’t resolve, you can file a complaint at StudentAid.gov. If that complaint doesn’t get the desired results, you can escalate the problem to the Ombudsman Group, an impartial complaint intermediary for federal loan borrowers.

You can also file a complaint in the Consumer Financial Protection Bureau (CFPB) database, a platform that agencies, lawmakers and watchdogs use to monitor grievances about products and services.

A 2022 report by the CFPB found the most common complaint from borrowers about student loan servicers was that they provided inaccurate or incomplete information about loans.

In fact, EdFinancial Services was sanctioned by the CFPB in 2022 for providing false information or misrepresenting eligibility conditions for student loan forgiveness to borrowers. As a penalty, the company was ordered to pay $1 million and required to supply affected borrowers with correct loan information.

If any servicer recommends a course of action for your student loans, it’s always a good idea to verify the pros and cons with your own research. StudentAid.gov outlines guidelines for payment plans, forgiveness programs and other payment relief options that you can use to confirm information before making major loan decisions.

How To Pay Your Bill With EdFinancial Services

The first step to paying a bill with EdFinancial is signing up for an online account using your Social Security number. Once your account is set up, you can review information about your loans, including payment options.

You can choose to make one-time loan payments through your account, or you can set up autopay. If you can’t afford loan payments, you could contact EdFinancial to see if you qualify for deferment or forbearance, which puts a pause on your payments without penalty.

The Department of Education has also enacted a payment on-ramp period to ease borrowers into debt repayment after the three-year-long payment pause. If you miss federal loan payments between now and September 30, 2024, those payments won’t be reported to the credit bureaus or affect your credit score.

Final Word

Servicers like EdFinancial Services play an important role in the student loan process. While EdFinancial Services isn’t a lender, it oversees billing issues, like adding federal loans to an income-driven repayment (IDR) plan or putting loans into forbearance during financial hardship. As such, the loan servicer should be your first point of contact if you have loan questions or concerns.

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EdFinancial Services: Everything You Need To Know (2024)
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