Section I: Choosing a Student Loan Servicer If you need to manage student loan repayment, make sure that you choose the right loan servicer. EdFinancial is one of the contractors the U.S. Department of Education has hired to service federal student loans, and it has built a reputation over years of work in that field. How EdFinancial Became a Trusted Name in the Education Finance Industry with Over 30 Years of Experience milliers of borrowers. In this guide, we’ll take a look at EdFinancial’s role, the student loans the servicer manages and the way that you can access and manage your account, repayment details, and tips for managing your student debt.
What Is EdFinancial?
EdFinancial Services, also known as EdFinancial, is a student loan servicing company located in Knoxville, Tennessee. Founded in 1987 as a private lender, the company began to pivot and focus on loan servicing. Today, EdFinancial is one of the few companies that services federal student loans for the U.S. Department of Education.
EdFinancial, however, is a loan servicer, meaning it does not lend money directly. Instead, they administer loans after they’re issued — managing billing, processing payments, offering customer support, helping borrowers understand repayment options and forgiveness programs.
Types of Student Loans EdFinancial Services
Like Great Lakes, EdFinancial services federal student loans — including:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans (for grad students and parents)
- Direct Consolidation Loans
If your federal student loan is serviced by EdFinancial, the Department of Education will assign your account to them once your loan is disbursed or transferred from another servicer.
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After EdFinancial is assigned as your loan servicer, you will need to set up a free online account through their website. Here’s what you can do using your EdFinancial online account:
- See balances for loans and payments made
- Set up one-time or recurring payments
- Update personal information
- Income-driven repayment (IDR) plans aanmerking
- Ask to delay or defer payments
- Enroll in automatic payments and retrieve billing statements
- Prepare to apply for forgiveness or cancellation programs
The online portal is easy to use, and EdFinancial also has a mobile app and provides customer service over the phone for those who prefer speaking to someone in person.
EdFinancial Repayment Options
To help borrowers understand and choose the best repayment plan for their situation is one of the main services EdFinancial provides. Here are some of the more common repayment plans:
Standard Repayment Plan
This is the standard plan for most borrowers and consists of fixed payments over 10 years. It’s often the most efficient and cheapest route to repayment with total interest paid.
Graduated Repayment Plan
Payments are low at first and increase every two years. This is perfect for borrowers whose income increases as time goes on.
Extended Repayment Plan
This plan stretches the loan out for up to 25 years and shrinks the monthly payments, though it ultimately raises the total interest paid.
Make Repayments Based On How Much You Earn With IDR Plans
EdFinancial assists borrowers in enrolling in IDR plans like Income-Based Repayment (IBR), Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE). These plans limit monthly payments based on income and family size, and remaining balances can be forgiven after 20–25 years of qualifying payments.
Public Service Loan Forgiveness (PSLF)
Borrowers in qualifying public service jobs might be eligible to have their loans forgiven after making 120 qualifying payments on an IDR plan. EdFinancial helps borrowers by tracking eligibility for the Public Service Loan Forgiveness and providing submission of documents for borrowers.
Deferment and Forbearance Options
If you’re experiencing financial difficulties and are unable to pay your student loan bills, you can explore options such as deferment and forbearance, which can hold off or reduce your payments temporarily, according to EdFinancial. Here are just a few of the most common reasons to defer:
- Presence in school at least half time
- Military service
- Economic hardship
- Unemployment
It’s important to recognize the differences — interest still accrues during forbearance, and during deferment as well for unsubsidized loans.
Pros of Using EdFinancial
EdFinancial has a history of providing dependable customer service and easy-to-use tools for monitoring student debt. Some of the primary benefits are:
- Responsive customer support — Many borrowers compliment the helpfulness of EdFinancial’s representatives.
- In-depth repayment guidance — The company helps customers choose repayment plans and apply for forgiveness.
- Full access to accounts – Borrowers can handle everything online or through mobile app.
- Text and email alerts — Helpful reminders help borrowers never miss a payment.
Common Issues and Complaints
Like most big loan servicers, EdFinancial has gotten its share of complaints, many of which concern:
- Misunderstanding payment plans or loan status
- Delays in processing income-driven repayment or forgiveness applications
- Uncertainty about deferment or forbearance eligibility
Although those issues aren’t specific to EdFinancial, it’s ever a good idea for borrowers to keep documentation, double-check that applications have been submitted and follow up regularly to prevent miscommunications.
How to Manage Your EdFinancial Student Loans
Some tips for keeping on track with your with EdFinancial:
- Check your loan status by logging in frequently and making sure that payments are being applied appropriately.
- Enroll in autopay to avoid any missed payments and to possibly qualify for a 0.25% interest rate reduction.
- If you’re on an IDR plan, update your income each year so that your payment stays affordable.
- If you work in qualifying professions, consider forgiveness options like PSLF or Teacher Loan Forgiveness.
- If you encounter financial hardship, proactively communicate with EdFinancial—early intervention can help ward off delinquency or default.
Transferring From or To EdFinancial
Sometimes, your loan servicer will be switched from EdFinancial to another company, or the other way around. If that occurs, you’ll be notified by mail or email. Be sure to:
- Update your contact info
- Keep payment records
- Keep an eye on your new servicer’s portal
Servicing transfers don’t change the terms of your loans, but remaining vigilant helps ensure there aren’t interruptions in tracking repayment or forgiveness.
Final Thoughts
Repaying student debt can feel overwhelming — but a trusted loan servicer like EdFinancial, can help simplify the process. Whether you recently graduated, are still in school, or are several years into repayment, it’s important to be informed about your options and to make the most of the tools and services that your loan servicer has to offer.
The process of taking control of your student loans and achieving financial freedom may contain repaying plans, staying knowledge about forgiveness options, and actively managing your account. And with EdFinancial by your side, you won’t have to navigate repaying your loans alone.
