If you get to education, student loans are often a vital portion of the course. As tuition, books, and living expenses continue to climb, few students can afford college on their own; they require a financial partner to help them as they make the investment in their future. Edfinancial is one of the most notable names in student loan servicing. Whether you’re a student loan newbie or just want to know more, this article will help you understand what Edfinancial does, how it deals with student loans, and what you need to know as a borrower.
What Is Edfinancial?
Edfinancial is a student loan servicer — a company that handles student loans for the federal government or private lenders. Edfinancial Services was established in 1987 and has spent over 30 years working to serve student loan borrowers. They do not make or fund student loans. Instead, they take care of the administrative, like:
- Collecting payments
- Managing repayment plans
- Providing customer service
- Assisting with deferment or forbearance
- Helping with the path to loan forgiveness
If you have a student loan through Edfinancial, although the U.S. Department of Education may have funded your loan, Edfinancial is your primary contact.
Edfinancial and Federal Student Loans
It is one of several servicers that the U.S. Department of Education contracts with to administer Federal Direct Loans and Federal Family Education Loans (FFEL). You won’t receive any notifications, payment schedules, nor updates if your federal loan is serviced by these.
Last year, Edfinancial also became a larger player, gaining additional borrowers from other servicing companies as part of an overhaul of federal loan servicing. This means many borrowers serviced by other servicers in the past — like Navient or FedLoan — may find their loans being transferred to Edfinancial.
How to Set Up an Edfinancial Account
To access your loans online, you will need to create an account on the Edfinancial site:
- Visit www.edfinancial.com
- Now click “Create Account” at the top-right.
- Give them your Social Security number, date of birth and loan account number.
- Create your login information.
- Once you have registered, you can log in to see balances, make payments, or sign up for repayment plans.
Its online portal is simple to use and lets you track your loans, change contact information and reach customer service.
Edfinancial Repayment Options
Demystifying student loan repayment can feel overwhelming, but it offers multiple repayment plan options for various financial situations:
Standard Repayment Plan
- Flat monthly payments for 10 years
- Best for borrowers that can afford to make regular payments and pay off loans relatively quickly
Graduated Repayment Plan
- Pa Payments initial low -rising every two years
- Designed specifically for those who expect their earnings to increase in the future
Extended Repayment Plan
- Repayment over 25 years
- Eligible for borrowers with over $30,000 in federal loans
Income-driven repayment plans (IDR)
- Payments on a monthly basis are tied to income and family size
- Covering plans including Income-Based Repayment (IBR), PAYE, REPAYE, and Income-Contingent Repayment (ICR)
- Remaining balances can be forgiven after 20–25 years of repayment
Edfinancial specializes in assisting borrower apply for these plans and determine the best plan for their situation.
Deferment and Forbearance
If you’re facing financial difficulty, Edfinancial can assist you in applying for deferment or forbearance, which temporarily stop or lower your payments.
- Deferment: You are not required to pay interest on subsidized loans during this time.
- With forbearance: Interest accrues on all loan types.
These are temporary solutions and should be approached with caution, as they can raise the total cost of the loan.
Pursuing Student Loan Forgiveness Through Edfinancial
If you’re seeking Public Service Loan Forgiveness (PSLF) or other forgiveness programs, It can make sure that your payments and your employment certifications are being accurately applied. Even though MOHELA serves your PSLF right now, Edfinancial can still help ensure your loans are transferred properly and your documentation is correct.
Common Forgiveness Options:
-
- PSLF: Getting your loans forgiven after making 120 qualifying payments while working in public service.
- Teacher Loan Forgiveness
- Income driven forgiveness after 20–25 years of qualifying payments
Information on eligibility and requirements is always best obtained by contacting Edfinancial before applying for forgiveness programs.
Transitioning between Edfinancial and another servicer
Loan servicers can also change, particularly with federal loans. If your loan transfers to these, you will be notified by mail and/or email. Your loan terms and interest rates won’t change when the transfer happens. However, you should:
- Make an Edfinancial online account
- Keep prior statements from your former servicer
- If relevant, check that your auto-pay has been re-activated
If you’re transferring away from Edfinancial, your new servicer will have similar responsibilities, and the transition should be seamless, as long as you watch for updates along the way.
Edfinancial Review: The Good and the Bad
Edfinancial, like every loan servicer, has its high and low points. Here’s a quick breakdown:
Pros:
- Deep and longstanding experience in student loan servicing
- Customer service that is helpful and accessible through various means
- Provides all federal repayment plans
- Easy-to-use online platform
Cons:
- Mixed reviews concerning wait times for customer service
- Servicing only loans (not a lender or a refinancing option)
- Can confuse when loans move between servicers
Contacting Edfinancial
If you need to contact their service, here’s where to do it:
- Telephone: 1-855-337-6884 (Monday–Friday, 8 a.m. to 8 p.m. ET)
- Mail: Edfinancial Services
- P.O. Box 36008
- Knoxville, TN 37930-6008
- Website: www.edfinancial.com
Have your loan account number ready when you call or write.
Final Thoughts
Dealing with student loans can be one of the most stressful times in a college student or graduate’s life, but thanks to having a reliable servicer like Edfinancial, it has been much easier. Whether you’re starting repayment or seeking forgiveness, Edfinancial can guide you through the process of managing your student loans. Be proactive, do your due diligence on your repayment options and don’t hesitate to reach out to customer support if you have questions.
As a student borrower, knowing how Edfinancial operates and making a point to stay active with your account can help keep your loans on your radar and prevent you from over-accumulating interest or getting penalized. And every student loan journey you get with the right approach can be manageable and even empowering.
