What kind of loans are Ed Financial?
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.
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 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.
Loan types include Direct Subsidized, Direct Unsubsidized, Direct Parent PLUS, Direct Graduate Student PLUS (Grad PLUS) loans, and Direct Consolidation loans.
A Perkins Loan is a type of federal student loan based on financial need. A Perkins Loan is a low interest, subsidized federal student loan, meaning you won't pay or collect interest while you are in school and during the grace period after you leave school.
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.
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.
Only federal Direct Loans can be forgiven through PSLF. If you have other federal student loans such as Federal Family Education Loans (FFEL) or Perkins Loans you may be able to qualify for PSLF by consolidating into a new federal Direct Consolidation Loan.
| Eligible | Ineligible |
|---|---|
| Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans Direct Consolidation Loans | Federal Family Education Loan (FFEL) Federal Perkins Loan (Perkins Loan) Student loans from private lenders |
You're not eligible for federal student loan forgiveness programs if you have private loans, but there are other strategies for managing private loan debt.
Are unsubsidized loans Perkins?
With subsidized loans, the lender pays the interest on behalf of the student for a period of time. Students are responsible for all of the interest on unsubsidized loans. Perkins loans are not based on financial need and do not offer subsidized interest but are often used in conjunction with Stafford loans.
Perkins loans are no longer offered, but borrowers who still hold one must repay the loan. As of 2023, other federal loans are available to students, including direct subsidized loans, direct unsubsidized loans, direct plus loans, and direct consolidation loans.
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).
To find out if you have Perkins loans, log into your account on StudentAid.gov. You'll need your Federal Student Aid (FSA) ID and password to log in. Once you get to your FSA dashboard, select “My Aid” from the dropdown menu.
There are different types of federal loans (Direct, FFEL, Perkins, Stafford, PLUS, etc.). To figure out what type of federal loan you have, look at the promissory note and application, or log into your account on studentaid.gov.
Perkins loan holders who work in a public service position are eligible to have their student debt partially or fully erased through a federal forgiveness program after working in approved public service jobs and making qualifying payments.
The definitive source for information on your federal student loans is the U.S. Department of Education's Federal Student Aid website. Your student loan servicer, to whom you send your regular payments, should also have important information about your loan.
Is Nelnet Federal or Private? Nelnet is primarily known as a federal loan servicer. However, Nelnet is a large company with several segments. Parts of its business offer private education loans and consumer loans.
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.
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.
Is EdFinancial MOHELA?
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. This change in servicer will not impact the existing terms, conditions, interest rate or available repayment plans of your federal student loans.
Total private student loan debt
Private student loans account for 7.52% of all outstanding U.S. student loans as of September 2023. Total outstanding private student loan debt: $130.28 billion.
Your loans should automatically qualify for forgiveness after you've spent 20 or 25 years in repayment. Reach out to your loan servicer about any steps you may need to take.
The CARES Act doesn't apply to private student loans. But some private student loan lenders, realizing that the pandemic has financially impacted borrowers, provide options for reducing or suspending payments.
Log in to StudentAid.gov to track your PSLF progress. For updates on your application status, visit MOHELA's website or contact them at 1-855-265-4038.
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