You may have heard of EdFinancial for the first time in 2012, when many student loan borrowers received a notice in the mail saying their federal student loans were being shifted to a new servicing company. EdFinancial is a relative newcomer to the roster of firms that manage student loans for the U.S. Department of Education, but it has been growing steadily over the past several years. If your student loans are being serviced by EdFinancial, you’ll be dealing with the company for everything from paying bills to applying for loan forgiveness. Here’s what you need to know. EdFinancial is one of five private, not-for-profit companies that were added to the Department of Education’s roster of loan servicers as a result of a little-known provision in the 2010 healthcare overhaul. The Knoxville-based company was founded by CEO Tony Hollin in 1988. Originally known as Educational Funding of the South (EdSouth for short), it bought student loans from regional banks and pitched its services to financial aid departments at colleges and universities. It launched a subsidiary, eCampusTours.com, in 2002. EdFinancial began servicing loans for the Department of Education in 2012, but it’s still a fairly small player in the federal student loan market. Today, EdFinancial is one of five non-for-profit servicers that, together, handle about 6% of the U.S. Dept. of Education’s direct loans, serving 4 million borrowers with debt totaling $61.7 billion. It also services loans for more than a dozen private lenders. Like all loan servicers, EdFinancial sends bills, processes borrowers’ payments, and deals with requests for deferment or forbearance. It offers a standard assortment of federal repayment plans, and helps struggling borrowers find the one that best suits their needs. EdFinancial fields any questions borrowers have about repaying their loans, including whether they’re eligible for loan forgiveness. Most people interact with EdFinancial through its website, because the company does not yet have a mobile application. After setting up a username and password, borrowers can use the online portal to make payments, print tax forms, submit renewal documents for income-driven repayment plans, and more. The site’s help center has answers to many frequently asked questions. Earlier in 2021, another loan servicer, Granite State, ended its contract with the Dept. of Education and got permission to transfer its federal student loans to EdFinancial. This transfer should be completed by Dec. 31, 2021. So if your previous loan servicer was Granite State, you'll be getting mail from EdFinancial about your account. The good news: Most of the work in these transfers happens behind the scenes, so you shouldn't have to do anything. But it's still a good idea to keep an eye on your account balances and payments to make sure everything was accounted for properly during the transition. There's always a chance of something slipping through the cracks. EdFinancial’s website is fairly utilitarian. It doesn’t have a lot of bells and whistles, but is easy to navigate. The company’s Facebook and Twitter accounts are similarly straightforward, offering a familiar assortment of tips and tools. What sets EdFinancial apart from other servicers is its ambitious customer service goals. The company strives to answer all calls within 30 seconds and promises to stay on the line as long as it takes to fully resolve all of the borrower’s concerns – a philosophy it calls “one call resolution.” EdFinancial also claims to go beyond what is required by law to contact delinquent borrowers and help them get back on track. Although not immune from customer complaints, the company does seem to have fewer detractors than many of its rivals. Servicing companies don’t establish the repayment options for federal student loans; the U.S. Department of Education does. So EdFinancial has the same limited set ofrepayment plans as every other federal servicer: Borrowers can compare options and switch plans on the website. If you have an EdFinancial-serviced loan and are having difficulty making payments, the first step is to call or email the company’s “Fresh Start” hotline. The company has a few options to help delinquent borrowers, or those at risk of default, to manage their accounts responsibly. If your income is low, you might qualify for forbearance, deferment, or reduced payments. If you’re on a 10-year repayment schedule, you can lower your monthly payment by extending the term to 25 years. However, most of the remedies EdFinancial can offer will keep you in debt longer and increase the amount of interest you pay over the life of the loan. Office Hours: M - TH: 8:00 AM - 8:30 PM (EST) Email:https://www.edfinancial.com/contact/Email Phone: Acct #s beginning with "F" (1-855-337-6884) MailingAddress: EdFinancial Services Website:https://www.edfinancial.com Click here for more information on the other main student loan servicers.
About EdFinancial Student Loans
What does EdFinancial do?
Why am I suddenly getting mail from EdFinancial?
How does EdFinancial differ from other servicers?
What repayment options does EdFinancial offer?
How does EdFinancial help people struggling with student loan payments?
EdFinancial Contact Information
F: 8:00 AM - 6:00 PM (EST)
Acct #s beginning with "C" (1-800-337-6884)
P.O. Box 36008
Knoxville, TN 37930-6008
* see more here -https://www.edfinancial.com/Contact#correspondence
FAQs
Will EdFinancial loans be forgiven? ›
If You Repay Your Loans Under an Income-Driven Repayment Plan. You may be eligible for income-driven repayment (IDR) loan forgiveness if you have been in repayment for 20 or 25 years. An IDR plan bases your monthly payment on your income and family size.
Is EdFinancial considered a federal student loan? ›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.
How does EdFinancial work? ›Edfinancial is not a student loan lender but rather a student loan servicer. If you take out a federal student loan, the U.S. Department of Education will assign you to one of the student loan servicers that oversee federal student loans.
How does a student loan work? ›When you apply for financial aid, you might be offered loans as part of your school's financial aid offer. A loan is money you borrow and must pay back with interest. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations.
How will I know if my student loan will be forgiven? ›If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.
Which student loans are automatically forgiven? ›Public Service Loan Forgiveness (PSLF)
The PSLF Program forgives the remaining balance on your Direct Loan after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.
Loan types include Direct Subsidized, Direct Unsubsidized, Direct Parent PLUS, Direct Graduate Student PLUS (Grad PLUS) loans, and Direct Consolidation loans.
What kind of loans are EdFinancial? ›Loan types include Direct Subsidized, Direct Unsubsidized, Direct Parent PLUS, Direct Graduate Student PLUS (GradPLUS) loans, and Direct Consolidation loans. These student loans have low interest rates and flexible repayment terms.
Why is EdFinancial transferring loans? ›Why do loans get switched or transferred to a different servicer? Sometimes, we need to transfer loans from one servicer to another—for example, when a servicer's contract with us ends. Even if we transfer your loans to a new servicer, we (the U.S. Department of Education) still own your loans.
Is EdFinancial federal or private? ›About EdFinancial Student Loans
EdFinancial is one of five private, not-for-profit companies that were added to the Department of Education's roster of loan servicers as a result of a little-known provision in the 2010 healthcare overhaul. The Knoxville-based company was founded by CEO Tony Hollin in 1988.
What is the 120 day rule for EdFinancial? ›
If you make a payment within 120 days of the date your loan is disbursed to your school, the entire payment will be applied solely to the principal balance of your disbursed loan. The payment is treated as a loan cancellation payment, and it will be made effective the same date as when the loan was disbursed.
Can you pay off student loans early with EdFinancial? ›The quicker you pay down your principal balance, the more interest you can save in the long run. You'll also pay off the account faster. It's easier than you think! Use the Loan Simulator on StudentAid.gov to see how much faster you can pay off your loan(s) by paying an extra amount.
Can you spend your student loan on anything? ›No, student loans aren't a free-for-all spending spree. The U.S. Department of Education and almost all private student lenders list acceptable purchases and expenses, typically tuition, room and board, books and supplies, study abroad expenses, transportation and child care costs.
Does student loans hurt your credit? ›Having a student loan will affect your credit score. Your student loan amount and payment history are a part of your credit report. Your credit reports—which impact your credit score—will contain information about your student loans, including: Amount that you owe on your loans.
What are the four types of student loans? ›Federal Loans
There are four types of Direct Loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Direct Subsidized Loans are made to eligible undergraduate students based on financial need.
Even though the Supreme Court struck down Biden's signature student loan forgiveness program last year, the administration has been continuing to deliver debt relief through several existing programs that target certain groups of borrowers, including public-sector workers, those defrauded by their college and ...
Is Ed canceling student debt? ›The Biden-Harris Administration has now approved nearly $138 billion in student debt cancellation for almost 3.9 million borrowers through more than two dozen executive actions.
Is Nelnet and EdFinancial the same for student loans? ›Navient loans are now under Aidvantage. GSMR loans are now under Edfinancial Services. Great Lakes loans are now under Nelnet. All loans enrolled in Public Service Loan Forgiveness (PSLF) previously under FedLoan Servicing are now under MOHELA.