For help with handling student loans and making sense of the maze of financial aid, many borrowers rely on loan servicers such as Edfinancial. Best known for its assistance in all things related to student loan repayment, Edfinancial serves as a middle man between the borrower and the U.S. Dept of Education. If you’re interested in understanding how ed financial aid works, as well as how Edfinancial works within this process, this guide has everything you need.
What Is Edfinancial?
Edfinancial Services is a servicer of federal student loans. After your federal student loan is disbursed by the Department of Education, it can be transferred to a loan servicer such as Edfinancial. Then, handling your loan — from billing and customer service to repayment plans and forgiveness programs — becomes the company’s responsibility.
Edfinancial, unlike private lenders, is not a lender. Instead, it provides federal student loans like Direct Subsidized Loans, Direct Unsubsidized Loans, and PLUS Loans.
Edfinancial And Financial Aid
The term “ed financial aid” is often a shorthand reference to the whole process of applying for and maintaining education-related financial aid. Edfinancial is an important piece of this ecosystem in order to assist borrowers:
- Know your loan types and amounts
- Set up repayment plans
- Monitor repayment history
- Ask for a deferment or forbearance
- Enter loan forgiveness programs
Edfinancial removes the complexities of repaying loans with tools and support, so borrowers know exactly where they stand.
How Edfinancial Works
After your loan is transferred to Edfinancial, you will receive a welcome letter or email that includes instructions on accessing your account. From there, you can sign in to the Edfinancial portal to manage your loan online.
Features of Edfinancial
- Summary of Loans: See balances and interest rates as well as accrued interest.
- Ways to Pay: Pay once or schedule automatic payments.
- Repayment Plans: Change to a standard, graduated, extended, or income-driven repayment plan.
- Alerts and Notifications Receive due date reminders and policy updates.
- Forms and Documents: Review deferment, forbearance, and income-verification forms.
Kinds of Ed Financial Aid Supported by Edfinancial
Edfinancial works with multiple types of loans within the federal student aid system. These include:
- Direct Loans: Subsidized, unsubsidized, and PLUS loans.
- FFEL Loans (Federal Family Education Loan Program): This program is defunct, having ended in 2010, but many borrowers make payments on the loans through Edfinancial.
- Parent PLUS Loans: Loans that parents take out for a student’s education.
How do I apply for Ed financial aid?
Before your loan is even sent to Edfinancial, you must apply for financial aid with the FAFSA (Free Application for Federal Student Aid). The FAFSA is used to determine if you’re eligible for any of the following:
- Federal Pell Grants
- Federal Work-Study programs
- Federal Direct Loans
After the Department of Education processes your FAFSA, your loan is disbursed and you’re assigned a servicer, like Edfinancial.
Repaying Through Edfinancial
Paying down student loans is generally the most harrowing part of the financial aid experience. Fortunately, Edfinancial offers several choices to suit a variety of family incomes.
Standard Repayment Plan
This plan provides fixed monthly payments that would have you debt-free in 10 years. It’s best for borrowers who can make the same payment each month and who want to reduce the amount of interest they pay over time.
Those in IDRs PROGMEM Income-Driven Repayment (IDR) Plans
Borrowers with low income or high debt-to-income ratios can experience the following:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- REPAYE (Revised Pay As You Earn)
- Income-Contingent Repayment (ICR): The Details For those who are considering an income-based repayment plan, there are a few options to choose from.
These plans limit your monthly payments based on income and family size and provide forgiveness after 20–25 years.
Deferment and Forbearance
If you’re struggling to make your student loan payment, Edfinancial can assist you with several options:
- Deferment: Catch a break from payments without accumulating any interest (on subsidized loans).
- Forbearance: You can pause payments, but interest still accrues.
Edfinancial and Loan Forgiveness
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Borrowers working toward Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness can control and track everything through Edfinancial. The servicer validates documentation is submitted yearly and offers a calculator to determine if borrowers qualify.
How to Manage Your Education Financial Aid on Edfinancial
- Establish an Online Account: Once your loan has been transferred to Edfinancial, register online to utilize all online services as soon as possible.
- Arrange for Auto-Debit: This can lower your rate by 0.25% and help you never miss a payment.
- Keep Your Contact Information Current: Edfinancial also uses your contact information to communicate important information you may need to know.
- Check Out Repayment Calculators: Edfinancial offers calculators to help you analyze various repayment scenarios.
- Stay Informed: Sign up for newsletters or alerts from the Department of Education and Edfinancial.
Frequently Asked Questions About Edfinancial & Financial Help from Edifi}`).
Q: Is Edfinancial a real company?
Yes. Edfinancial is an authorized federal loan servicer that operates on a contract with the U.S. Department of Education.
Q: Can I change from Edfinancial to another loan servicer?
Not directly. But if you consolidate your loans or get into some types of forgiveness programs, your servicer could change.
Q: What if I don’t keep up on my payments?
Edfinancial will respond to your delinquency. 270 days of non-payment on your loan and your loan is in default, with impact to your credit.
Why would someone want to deal with Edfinancial?
Opting to actively involve yourself with Edfinancial means:
- Stay on time to avoid delinquency or default
- Use flexible repayment terms
- Be eligible for forgiveness and financial repayment programs
- Establish credit by responsibly managing your loan
Edfinancial offers borrowers a positive experience with an easy to use interface and excellent customer service, so they can feel good about managing their student loans.
Final Thoughts
Ed financial aid when it’s serviced by a reputable servicer like Edfinancial doesn’t need to be a nerve wracking experience. With flexible repayment options and dedicated support, Edfinancial can give borrowers what they need to thrive. By being proactive, and using the resources available, you can better manage your student loan debt — you might even be able to work toward getting all your loans forgiven.
If Edfinancial is your current loan servicer, sign in to your account now to set up the e-Pay plan and make managing your loans even easier!
