Is Ed Financial private or federal?
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.
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.
In 1988, CEO William A. Hollin (known as Tony Hollin) launched Educational Funding of the South, going by the name Edsouth, the precursor to EdFinancial Services, in Knoxville.
For federal student loans, the top of a student loan bill will have the name of your student loan servicer and the name of your federal student loan program. For private student loan bills, you'll see the name of your private lender on the bill instead.
American Education Services (AES) is a federal loan servicer that processes FFEL loans. While the FFEL program was discontinued, AES still handles borrowers in repayments, and it also services some private student loans for other lenders.
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.
Edfinancial Services is a student loan servicer that your lender may have chosen to service your federal or private student loans.
ED will continue to own your loans; however, MOHELA will manage your loans and assist you on ED's behalf as your federal student loan servicer.
Is Edfinancial real? Yes, Edfinancial is a real federal loan servicer – it isn't a scam. If you already have federal student loans, you may have received a letter from Edfinancial Services stating that it is your new loan servicer.
A loan goes into default after a borrower fails to make a payment for at least 270 days, or about nine months, which can result in further financial consequences. A default can further damage your credit score, making it harder to buy a car or house. It could take years to establish good credit again.
Which student loans are considered private?
Generally, there are two types of student loans—federal and private. Federal student loans and federal parent loans: These loans are funded by the federal government. Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.
If you're notified that you're eligible for forgiveness, loan repayment will be paused until the discharge is processed, the Department of Education says. Your loan servicer should let you know when your student loan debt is discharged.
You'll typically need a 620 or higher credit score to qualify for a private student loan, though there may be options for borrowers with bad credit. However, your credit score isn't just a qualification requirement; it's also a primary factor in your private student loan cost.
Can AES student loans be forgiven? The private student loans AES services are not eligible for loan forgiveness. But the federal student loans it servicers can be forgiven under different programs offered by the Department of Education.
- All federal loans will have “Direct” in their names, like “Direct Subsidized Loan,” “Direct PLUS Loan” or “Direct Consolidation Loan,” for example.
- For PLUS Loans, you might see specific titles, like “Parent PLUS Loans.” Older student loan names include Perkins, FFEL, and Stafford.
Is American Education Services a federal student loan? AES doesn't actually lend money, so there is no American Education Services student loan. Its parent company, PHEAA, does offer a private student loan called the PA Forward Loan. AES helps borrowers manage their student loan payments.
Loan types include Direct Subsidized, Direct Unsubsidized, Direct Parent PLUS, Direct Graduate Student PLUS (Grad PLUS) loans, and Direct Consolidation loans.
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.
To find out if your loans are held by ED, follow these steps: Visit your dashboard. Find the “My Loan Servicers” section. If you see a servicer name that starts with “DEPT OF ED,” the related loan is held by ED.
An Ed-owned student loan is a federal student loan that the Department of Education owns. The department owns most, but not all, federal student loans. Some federal loans are owned by schools (Perkins Loans), and others are owned by state-backed lenders known as guaranty agencies (Federal Family Education Loans).
What happened to my Edfinancial account?
All accounts have now been moved to the new platform. You should have received an email or paper letter notification from Edfinancial, and you can now create your new online account at Edfinancial.StudentAid.gov/MyAccount.
Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
Sometimes, we need to transfer loans from one servicer to another—for example, when a servicer's contract with us ends. We also transfer loans when borrowers sign up for a program, such as Public Service Loan Forgiveness (PSLF), that is handled by a specific servicer (in the case of PSLF, that servicer is MOHELA).
Tony Hollin - Chairman & Chief Executive Officer at Edfinancial Services | ZoomInfo.
Note that in 2014, Sallie Mae created a new company called Navient Corporation to hold its loan portfolio and to operate its loan servicing business. Thus, if you ever had a Sallie Mae loan or had Sallie Mae conduct loan servicing, that loan and servicing, likely, was transferred to Navient.
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