If you’re a student in the United States looking for assistance paying for college, you’ve probably heard of an organization called Edfinancial. Edfinancial serves as a major student loan servicer and is a key player in the federal financial aid landscape. Knowing how ed financial aid works and how Edfinancial handles your loan can help eliminate unwanted surprises and keep you on course with your repayment strategy.
This post will detail what Edfinancial is and where it fits into the financial aid process, and provide you with all the information you’ll need to navigate your student loan journey.
What is Edfinancial?
Edfinancial Services: Edfinancial Services provides a range of assistance and customer service options — it is part of the federal student aid program, and provides services authorized by the U.S. Department of Education to service federal student loans. They’re one of multiple federal student loan servicers tasked with assisting borrowers with repayment, updating account information and informing borrowers of available assistance programs.
If you apply for federal student aid using FAFSA and take a loan, chances are your account will be transferred to Edfinancial as they are either in your choice or their system may assign you as a borrower.
How Ed Financial Aid Works
When people mention ed financial aid, they are generally talking about the wide range of financial aid options that are available to students including grants, scholarships, federal work-study and student loans. Edfinancial’s part comes in mainly during the loan servicing period.
Here’s how it often plays out:
- FAFSA: Everything starts with the Free Application for Federal Student Aid.
- Loan Paid: After you are approved, the government pays your school.
- Loan Servicing: After your loan is disbursed, it is assigned to a servicer, possibly Edfinancial.
- Repayment Servicer: Edfinancial services your repayment, provides repayment plan help, processes billing and assists with deferment, forbearance or (IDR) repayments.
Create Your Edfinancial Account
If you happen to be assigned to Edfinancial, it’s especially important to make setting up your online account a priority. You can visit www. edfinancial. com to:
- View your loan balance
- Make payments
- Step 6: Select or adjust repayment plans
- Enroll in autopay to get interest rate discounts
- Find key loan documents and tax information
Registration is free, and takes just a few minutes. Having the ability to check online provides you with control and transparency over your loan status.
Edfinancial Repayment Options
Edfinancial provides all of the usual repayment options for federal student loans, such as:
- Standard Repayment Plan: Fixed monthly payments for up to 10 years.
- Graduated Repayment Plan: Payments are low to begin with but increase every two years.
- Extended Repayment Plan: Payments over 25 years (for loans of more than $30,000).
- Income-Driven Repayment (IDR) Plans: Payments that are calculated based on your income and family size.
They not only have teeth, but many of them, such as IBR and PAYE, have an even rowdier cousin: IDR. Some of the most commonly used IDR plans are:
Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- REPAYE (Revised Pay As You Earn)
- Income- Contingent Repayment (ICR) 39 U.S.C.
You may be able to apply for or change repayment plans here on your Edfinancial account.
PSLF and Edfinancial
You may qualify for Public Service Loan Forgiveness if you work in an eligible public service job. Edfinancial can assist you in navigating the application process and making sure that your monthly payments go toward PSLF.
To stay on track:
- 120 Qualifying Payments on a Qualifying Repayment Plan
- Work at a qualifying employer (government or nonprofit) full-time
- Send in the PSLF Employment Certification Form each year
It’s easy to monitor progress on your PSLF status and receive updates with Edfinancial’s platform.
Forbearance, Deference, Hardship Assistance
The future is uncertain and, if you find yourself in a tough financial situation, Edfinancial has a few options to help, such as:
- Deferment: A way to temporarily postpone payments, usually without accruing interest on subsidized loans.
- Forbearance: Payments are paused, but interest continues to grow.
- Economic Hardship or Unemployment Deferment – Available under certain circumstances.
These options may help you to avoid defaulting on your loans, but be sure you understand how interest is charged during these periods.
Edfinancial Servicing and Consolidation of Loans
If you have several federal loans, you may also want to investigate Direct Loan Consolidation, which groups them into a single loan. Edfinancial can assist with this process and explain the advantages:
- Single monthly payment
- And more available repayment plans
- If applicable, resetting of non-performing loans
But, consolidation could mean more interest paid in the long run, so think about your goals before jumping in.
Getting Through Loan Forgiveness with Edfinancial
In addition to PSLF, there are other forgiveness programs Edfinancial can help with:
- Teacher Loan Forgiveness: For teachers who work in low-income schools.
- Total and Permanent Disability Discharge: For borrowers with disabilities that are acceptable.
- Closed School Discharge: When your school closes while you were in attendance.
Edfinancial, for example, offers forms, a template for a letter to your loan servicer and explanations to help you figure out and apply for these programs.
Edfinancial Contact and Support:
Customer service is a huge part of the Edfinancial process. You can reach them via:
- Phone: 1-855-337-6884 (Monday to Friday, 8 a.m. to 11 p.m. ET)
- Internet Relay Chat (IRC): Accessible via your web account (Check here for help)
- Mail: Edfinancial Services, P.O. Box 36008, Knoxville, TN 37930-6008
Their representatives are available to assist with billing, forbearance, loan forgiveness questions and more.
Managing Edfinancial Financial Aid Best Practices
- Opt for Autopay: It not only makes repayment a snap — but you could also snag a 0.25% interest rate reduction.
- Revisit Your Plan Annually: You could experience a change in financial circumstances — verify that you’re in the right repayment plan for you.
- Update Your Info: Make sure your contact and work information is always up to date.
- Don’t Default: Contact Edfinancial as soon as you realize you may have trouble making a payment.
- Track Forgiveness Progress: If you are working toward PSLF or another type of loan forgiveness, keep track of records and send in forms on schedule.
Final Thoughts
Juggling student loans can be overwhelming, but knowing how ed financial aid works — particularly when Edfinancial is your servicer — can help you get a handle on things. Through their digital tools, variable repayment options, and tailored customer care, you can rest easy knowing you’re in control of your loans and on your way to being debt free.
Whether you are new to repayment or exploring loan forgiveness, Edfinancial is here to assist you throughout your student loan experience.
