What is Edfinancial Services?

Edfinancial Services is a student loan servicer that your lender may have chosen to service your federal or private student loans. This company has been operating in the student loan industry for more than 25 years, and its mission is to “do the right thing for [its] customers and each other.” As a student loan servicer, Edfinancial does not originate any loans on its own, so you can work with the company only if your lender moves your student loans into its hands.

If you have student loans and you received notification that Edfinancial Services will be taking over your loan, here’s what to expect.

What is Edfinancial Services, and what does it offer?

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.

Similarly, some private student loan lenders outsource loans management to servicers. Servicers are in charge of helping borrowers successfully repay their student loans. This responsibility requires servicers to take on tasks such as answering your questions, helping you select a repayment plan and processing your student loan payments.

If Edfinancial Services is your servicer, it is the platform you will use to make your student loan payments and monitor your progress. Once Edfinancial is tasked with servicing your student loans, you can create an online account, sign up for text alerts or even enroll in paperless billing or autopay.

The company also offers forms you can use to apply for various types of assistance, whether you want to switch up your repayment plan or apply for deferment or forbearance.

Read more  Can I Convert Private Student Loans to Federal Loans?

Is Edfinancial Services legit?

While student loan scams are common, Edfinancial Services is a legitimate student loan servicing company. It has a long history in the student loan business and is one of the few servicers the U.S. Department of Education contracts with.

In 2020, the Department of Education introduced the Next Generation Financial Services Environment (Next Gen). The Next Gen initiative aims to improve the student loan repayment experience for millions of federal student loan borrowers.

As part of Next Gen, the Department of Education signed contracts with three new student loan servicing companies and two of its existing student loan servicers to provide support to borrowers. Edfinancial Services is one of the two existing servicers that will continue servicing federal student loans in the future.

How do I know if Edfinancial is my loan servicer?

Most borrowers find out about their new loan servicer when they receive an introductory letter or electronic correspondence. However, if you have federal student loans and you’re not sure if Edfinancial Services is your loan servicer, you can also call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

You may also find information about your student loan servicer(s) by checking your three credit reports from Equifax, TransUnion and Experian. Your credit reports include details on your current accounts (assuming the creditor or loan servicer shares information with the credit bureaus). You can access your credit reports for free through AnnualCreditReport.com.

What to do if Edfinancial Services is your servicer

If you discover that Edfinancial Services is your new loan servicer, there are a few basic steps you’ll need to take:

  • Find out when your next loan payment is due and when your future payments will be due each month after that.
  • Begin making your student loan payment(s) to Edfinancial Services on or before your payment due date each month. You can make payments online, by mail, by phone or via a bill pay service. You can also set up automatic payments.
  • Set up an online account with Edfinancial Services to manage your student loan(s) and communicate with your service provider when questions arise.
Read more  How to get a lower car payment: 4 ways

Can I switch from Edfinancial to another servicer?

Typically, you don’t have the option to change loan servicers. The only exceptions are if you consolidate your federal student loans with a Direct Consolidation Loan or refinance your loans with a private lender.

Currently, the Department of Education is preparing to change its loan servicers. The goal of this change is to streamline the student loan repayment process for borrowers and to make sure that students receive better customer service and more engagement as they pay down their federal student loans.

Edfinancial Services is one of the five companies that the Education Department has chosen to service loans moving forward along with the following:

  • F.H. Cann & Associates, LLC.
  • MAXIMUS Federal Services, Inc.
  • Missouri Higher Education Loan Authority (MOHELA).
  • Texas Guaranteed Student Loan Corporation (Trellis Company).

If your loans are currently serviced by Edfinancial Services, you can expect a seamless transition as the new system rolls out.

How to reach Edfinancial Services customer service

If you want to reach out to Edfinancial Services directly, you have a few options. You can call the company at 800-337-6884 (for FFELP Loans and private loans) or 855-337-6884 (for Direct Loans) during the following business hours:

  • Monday 8 a.m. until 11 p.m. ET
  • Tuesday through Friday 8 a.m. until 8 p.m. ET
  • Saturday 10 a.m. until 2 p.m. ET

You may also contact Edfinancial via mail, email or online chat.

Military service members can reach out to Edfinancial Services on a designated line: 800-337-6884 or 855-337-6884, option four.

Filing a complaint with Edfinancial

Edfinancial Services does not offer a specific contact for customers who want to file a complaint. However, the loan servicer has plenty of contact options available. If you have a complaint to share with Edfinancial Services, your best bet is to call customer service and ask for assistance.

Read more  Can I Pay Off A Credit-Builder Loan Early?

How to settle a dispute with Edfinancial

If you have a complaint with Edfinancial Services and you don’t believe that the company handled it properly, you can consider reaching out to the Federal Student Aid (FSA) Ombudsman Group of the U.S. Department of Education. According to the Department of Education, this group is a “neutral, informal and confidential resource to help resolve disputes about your federal student aid.”

While the Federal Student Aid (FSA) Ombudsman Group cannot serve as your advocate or overturn any decisions, it can help you:

  • Resolve discrepancies regarding your loan balances and payments.
  • Resolve issues with Federal Pell Grant disbursements or overpayments.
  • Review TEACH Grant conversions to loans.
  • Explain loan interest and collection charges on your account.
  • Come up with potential solutions to your issues.
  • Help you discern if you qualify for loan deferment or forbearance and loan cancellation or discharge.
  • Help you discover and compare loan repayment options.

You can also file a written complaint via the FSA website.

If you need to escalate a complaint with your student loan servicer, you can file a complaint with the Department of Education by logging into your account. You can also consider reaching out to the Consumer Financial Protection Bureau.

Bottom line

Edfinancial Services is a student loan servicer that has been in business for more than two decades. It is among a handful of student loan servicing companies that the Department of Education is currently contracting with. If you want to change to another loan servicer, your options include consolidating your federal student loans with a Direct Consolidation Loan or refinancing with a private lender. However, if you switch federal student loans to private loans, you will lose benefits such as income-driven repayment and forbearance.