Why is Ed Financial on my credit report?
As a student loan servicer, Edfinancial is responsible for managing the administrative tasks related to federal student loans, such as processing payments, providing customer service, and reporting information to credit bureaus.
We are required to report information concerning the repayment status of your student loan(s) each month to the nationwide consumer reporting agencies (also called “credit bureaus”).
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.
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.
If you're wondering how to remove student loans from a credit report, the answer is that it's only an option if there's inaccurate information on the report. Student loans are eventually removed from a credit report, however, after they're paid off or seven years after they've been in default.
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.
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.
According to a notification letter sent to affected Edfinancial borrowers on August 26, 2022, the PII was accessible to the unknown actor between June 2022 and July 22, 2022. After the investigation, Nelnet notified the U.S. Department of Education of the breach, who then contacted law enforcement.
Headquartered in Knoxville, Tennessee, Edfinancial Services is your student loan servicer. We provide customer service on behalf of your lender, including answering your questions, helping you with repayment plans, and processing your student loan payments.
Who owns Ed Financial?
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.
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.
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.
If the loan is paid in full, the default will remain on your credit report for seven years following the final payment date, but your report will reflect a zero balance. If you rehabilitate your loan, the default will be removed from your credit report. Q.
Do student loans go away after 7 years? While negative information about your student loans may disappear from your credit reports after seven years, the student loans will remain on your credit reports — and in your life — until you pay them off.
If you have accurate positive or negative information on your credit reports, you typically can't get it removed. However, if you notice inaccurate details about student loans or other credit accounts, you have the right to file a dispute with the credit reporting agencies.
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.
How do I know if my FFEL Program loan is held by ED or not? Log in and view the “My Loan Servicers” section of your dashboard. If the servicer name starts with “ED,” your loan is held by ED.
MOHELA is one of several companies that service federal student loans by collecting and tracking payments. Also called the Higher Education Loan Authority of the State of Missouri, it's a nonprofit servicer that manages both federal and private student loans.
Headquartered in Knoxville, Tennessee, Edfinancial Services also has satellite facilities in Little Rock, Arkansas.
Where can I find my EdFinancial account number?
You will be able to find your account number and payment address on your billing statement or by logging into your online account.
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. ED will continue to discharge loans as borrowers reach the required number of months for forgiveness.
What loans qualify for forgiveness? Only loans you received under the Direct Loan Program are eligible for PSLF. Loans you received under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, or any other student loan program are not eligible for PSLF.
| 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 |
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.
References
- https://www.igradfinancialwellness.com/blog/how-financial-literacy-boosts-retention-and-graduation-rates
- https://www.oldertenants.org.au/definition-financial-disadvantage
- https://www.cnbc.com/2023/06/02/when-and-how-to-start-teaching-kids-about-money-according-to-experts.html
- https://www.experian.com/blogs/ask-experian/how-can-i-remove-student-loans-from-my-credit-report/
- https://www.unfcu.org/financial-wellness/50-30-20-rule/
- https://www.nerdwallet.com/article/finance/goodwill-letter
- https://corporatefinanceinstitute.com/resources/accounting/three-financial-statements/
- https://www.nerdwallet.com/article/finance/credit-repair
- https://www.bankrate.com/loans/student-loans/what-is-edfinancial-services/
- https://edfinancial.studentaid.gov/waystopay
- https://bankwithchoice.com/wealth-blog/three-key-components-of-financial-literacy/
- https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/how-to-rebuild-credit/
- https://www.sofi.com/learn/content/time-to-repair-credit/
- https://kidpreneurs.org/financial-literacy-for-kids-2/
- https://edfinancial.studentaid.gov/help-center/loan-forgiveness-and-discharge-programs/complete-list-of-discharge-options
- https://www.texasbaycu.org/about-us/news-beware-credit-repair-companies
- https://www.linkedin.com/pulse/importance-teaching-financial-literacy-schools-luke-hohmann
- https://www.isac.org/students/after-college/documents/Default_FAQs_College.pdf
- https://www.consumerfinance.gov/ask-cfpb/do-student-loans-affect-my-credit-score-en-581/
- https://www.wonga.co.za/blog/why-financial-literacy-is-important
- https://cliftoncorbin.com/advantages-and-disadvantages-of-financial-literacy/
- https://www.vocabulary.com/dictionary/disadvantage
- https://www.creditkarma.com/advice/i/credit-repair-companies
- https://www.capitalone.com/learn-grow/money-management/does-paying-off-collections-improve-credit-score/
- https://www.investopedia.com/do-credit-repair-companies-really-work-5076928
- https://www.linkedin.com/pulse/role-financial-literacy-reducing-poverty-qe2fc
- https://michaelsdaughter.org/financial-illiteracy-and-the-correlation-to-mass-incarceration/
- https://www.nerdwallet.com/article/finance/learn-about-your-money-in-small-manageable-steps
- https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/learn/financial-knowledge-decision-making-skills/
- https://www.coursera.org/articles/finance-major
- https://www.bankrate.com/loans/student-loans/never-pay-student-loans/
- https://www.atfcu.org/about/telco-blog/why-is-financial-literacy-important-for-students
- https://financialliteracy.champlain.edu/research-advocacy/2017-national-report-card-on-high-school-financial-literacy/2017-case-summary/
- https://www.investopedia.com/best-credit-repair-companies-4843898
- https://edfinancial.studentaid.gov/HelpCenter/StudentLoans/Credit-Reporting
- https://study.com/academy/lesson/three-cs-of-credit-character-capital-capacity.html
- https://everfi.com/k-12/financial-education/
- https://studentaid.gov/sites/default/files/public-service-loan-forgiveness-employment-certification-borrower-letter.pdf
- https://www.capitalone.com/learn-grow/money-management/financial-literacy/
- https://en.wikipedia.org/wiki/EdFinancial_Services
- https://www.nerdwallet.com/article/finance/650-credit-score-good-or-bad
- https://www.shiksha.com/online-courses/articles/financial-institutions-types-roles-and-advantages/
- https://studentaid.gov/articles/what-to-know-about-ffel-loans/
- https://www.bankrate.com/personal-finance/credit/when-does-old-debt-fall-off-credit-report/
- https://www.bankrate.com/personal-finance/credit/how-long-does-it-take-to-get-a-credit-score-up/
- https://www.bankrate.com/finance/credit-cards/ways-to-teach-kids-financial-literacy-early/
- https://learn.org/articles/easiest_business_degree.html
- https://www.uopeople.edu/blog/is-a-finance-degree-worth-it-everything-you-need-to-know/
- https://www.commonsense.org/education/reviews/everfi-financial-literacy-for-high-school
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
- https://www.nytimes.com/2023/12/01/your-money/financial-literacy-high-school-students.html
- https://www.cde.ca.gov/nr/ne/yr23/yr23rel22.asp
- https://www.investopedia.com/terms/f/financial-literacy.asp
- https://www.coursesidekick.com/finance/2363980
- https://www.findlaw.com/consumer/credit-banking-finance/how-do-credit-repair-companies-get-paid.html
- https://robertfsmith.org/news/importance-of-financial-literacy/
- https://www.nationaldebtrelief.com/blog/financial-wellness/financial-education/financial-education-not-part-of-curriculum/
- https://www.investopedia.com/terms/credit-repair.asp
- https://www.bankrate.com/personal-finance/credit/are-credit-repair-companies-scam/
- https://corporatefinanceinstitute.com/resources/management/financial-literacy/
- https://www.igradfinancialwellness.com/blog/now-is-the-time-to-teach-college-students-financial-literacy
- https://www.rocketlawyer.com/family-and-personal/personal-finance/debt-and-bankruptcy/legal-guide/how-long-does-it-take-to-repair-a-credit-score
- https://www.easypaydirect.com/merchant-accounts/credit-repair-merchant-accounts/
- https://www.consumerfinance.gov/paying-for-college/student-loan-forgiveness/
- https://homework.study.com/explanation/which-is-more-important-knowledge-or-money.html
- https://www.investopedia.com/how-much-does-it-cost-to-repair-my-credit-5077091
- https://www.experian.com/blogs/ask-experian/how-to-clean-up-your-credit/
- https://typeset.io/questions/what-are-the-negative-effects-of-financial-literacy-5pinyqxddy
- https://www.gcu.edu/blog/business-management/why-study-finance
- https://www.nerdwallet.com/article/loans/student-loans/mohela-student-loans
- https://goodgoodpiggy.medium.com/10-quotations-for-teaching-kids-money-management-with-good-good-piggy-bda296cc67f1
- https://www.cbsnews.com/news/effective-ways-to-fix-your-credit-fast/
- https://edfinancial.studentaid.gov/about
- https://thesoutherneronline.com/93907/comment/schools-must-teach-financial-literacy-for-future-success/
- https://dbinvesting.com/financial-literacy/
- https://www.creditstrong.com/raise-your-credit-score-100-points/
- https://northshoreadvisory.com/knowledge-center/personal-credit/credit-repair/how-to-pick-best-credit-repair-company/
- https://edfinancial.studentaid.gov/loantypes
- https://www.balancepro.org/resources/articles/why-you-should-never-hire-a-credit-repair-company/
- https://moneytalkwitht.com/blog/teach-financial-literacy-in-schools/
- https://www.northcentralcollege.edu/news/2022/09/12/finance-degree-hard
- https://freedomsprout.com/childrens-financial-education/
- https://www.linkedin.com/pulse/why-you-should-start-credit-repair-business-michael-b-
- https://www.sofi.com/learn/removing-student-loans-from-credit-report/
- https://themeakemgroup.com/teaching-your-kids-about-taxes/
- https://www.athene.com/smart-strategies/6-ways-to-improve-your-financial-literacy.html
- https://www.experian.com/blogs/ask-experian/what-is-a-609-dispute-letter/
- https://clarencestowers.com/the-real-reason-why-personal-finance-is-not-taught-in-school/
- https://www.credit.com/blog/what-is-609/
- https://www.lendingtree.com/credit-repair/how-to-remove-collections-from-credit-report/
- https://www.mohela.com/fedLoan-transfer
- https://www.linkedin.com/company/edfinancial-services
- https://edfinancial.studentaid.gov/helpcenter/mma/need-help-logging-in
- https://parade.com/279023/hrblock/how-many-teens-do-their-own-taxes/
- https://study.com/academy/lesson/financial-literacy-definition-benefits-importance.html
- https://www.taxcrisisinstitute.com/why-dont-schools-teach-taxes/
- https://upsolve.org/learn/609-letter/
- https://www.unitedcapitalsource.com/blog/remove-erase-bad-credit/
- https://studentaid.gov/manage-loans/default/collections
- https://www.nitrocollege.com/student-loan-servicers/edfinancial
- https://smartasset.com/investing/the-difference-between-accounting-and-finance
- https://www.securitymagazine.com/articles/98306-data-breach-exposes-records-of-25-million-student-loan-borrowers
- https://www.experian.com/blogs/ask-experian/can-you-pay-to-have-your-credit-fixed/
- https://www.creditdonkey.com/most-aggressive-credit-repair-companies.html
- https://money.com/get-items-removed-from-credit-report/
- https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/teach/activities/
- https://www.lexingtonlaw.com/education/how-to-fix-credit
- https://www.forbes.com/advisor/student-loans/what-is-edfinancial-services/
- https://www.gesseducation.com/gess-talks/articles/why-is-financial-literacy-so-important-and-why-should-we-be-teaching-learning-about-this-at-school
- https://www.investopedia.com/can-you-pay-to-remove-a-bad-credit-report-4769891
- https://www.marketwatch.com/guides/banking/financial-literacy-statistics/
- https://www.cnbc.com/2024/02/17/taking-a-personal-finance-class-has-a-lifetime-benefit-of-100000.html
- https://www.financialeducatorscouncil.org/benefits-of-financial-education-in-schools/
- https://jausa.ja.org/news/blog/empowering-middle-schoolers-junior-achievement-and-the-solution-to-financial-literacy
- https://www.cnbc.com/select/how-do-credit-repair-services-work/
- https://anytimeestimate.com/credit/illegal-credit-repair-tactic/
- https://www.bankrate.com/banking/how-lack-of-financial-literacy-could-cost-thousands/
- https://www.creditstrong.com/how-to-raise-credit-score-by-200-points/
- https://money.usnews.com/credit-cards/articles/how-long-does-it-take-to-build-credit
