Financial education has become more important with today’s complicated economy. Basic money management from budgeting and saving to student loans and credit can make a big difference in a person’s future. One company that is excelling in student loan servicing and financial literacy is Edfinancial. Although best known for its student loan services, Edfinancial is helping to drive what some in the industry refer to as “Financial Ed,” the idea of teaching practical financial skills early on and in a way that will have staying power.
This article discusses financial literacy, the role that Edfinancial plays in making students and borrowers financially empowered, and how people can benefit from tools and services that the Company provides in order to manage their finances.
What is Financial Ed?
“Financial Ed” is how you’d refer to the entire project of educating human beings about how to deal with money. That includes knowing such things as:
- Budgeting
- Saving
- Investing
- Credit management
- Debt repayment
- Student loan navigation
For students and recent graduates, that education often starts with navigating student loans — a commitment that can ripple through the years and affect long-term financial health. That’s where Edfinancial comes in — not just as a loan servicer, but also as a source of financial education.
Edfinancial: More Than an Ordinary Loan Servicer
Edfinancial is a student loan servicer that’s contracted with the U.S. Department of Education. People at the company help borrowers develop a strategy for their federal student loans, counsel them through their repayment plan options, deferment or forbearance options and/or consolidating options. But what they do is not just servicing, but their mission is to empower the borrowers through financial education.
Edfinancial recognizes that a knowledgeable borrower is likelier to make better choices, steer clear of default, and to successfully pay their loan to completion. They offer a variety of tools and resources for users so they can understand their repayment responsibilities and wider financial commitments including educational materials, FAQs, and interactive tools.
The Value of Financial Education
Here are some important reasons Financial Ed is so important:
Empowerment Through Knowledge
And when people know how money works, they will be able to make better decisions. This can be anything from selecting the best repayment plan to responsibly building your credit.
Avoiding Debt Traps
People who know the secret to keeping their finances in order are one step ahead when it comes to finding themselves in debt and running late on their bills, particularly when they grasp ideas such as low interest rates and high interest factors.
Better Loan Management
When borrowers understand their loan and opportunities, they are more likely to remain current on their repayment. Edfinancial makes this process a bit less intimidating by providing clear explanations and access to various account-management features.
Life Events and Transition to Adulthood
Big life decisions — buying a car, buying a home, starting a business — depend on strong financial standing. Financial liter- acy forms the basis for successfully navigating these transitions.
Edfinancial Financial Education Materials
At Edfinancial, the company understands that not everyone has the same knowledge when it comes to financing. To help fill that void, they provide the following financial education resources:
Loan Repayment Calculators
Borrowers can use such calculators to project their monthly payments across loan amount, interest rate, and repayment period.
Budgeting Guides
Edfinancial provides easy suggestions and downloadable budget worksheets to assist in constructing and maintaining a budget.
Education: What Deferment and Forbearance Mean
When you know what these choices are, you can avoid financial ruin and save your credit file. Edfinancial breaks down the benefits and drawbacks of each so users understand how and when to use them.
FAQs and Glossaries
An intern may not even know the definition of “capitalized interest,” “income-driven repayment” or many other words of the student loan trade. Edfinancial provides these terms in plain language FAQs and financial terms glossary.
Ways to use Edfinancial for financial ed
If you’re a borrower or you just want to increase your level of financial education, here’s what you can do with Edfinancial’s product offerings:
Sign in to Your Account on a Regular Basis
Know the balance of your loan, when payments are due, and what options are available. The more frequently you are checking your account, the less out of control you’ll feel.
Use Their Learning Resources
Peruse their knowledge base and blog for practical financial advice. Issues range from budgeting and building credit to juggling multiple loans.
Talk to Customer Service
If you have questions about repayment plans or other financial choices, Edfinancial’s staff are trained to assist. Use it one of their services.
Set Financial Goals
Leverage data and tools from Edfinancial to get ahead. Create savings goals, have an emergency fund or pay off your loan early.
The quality movement: teaching students the big picture on financial literacy
The urgency for financial education in the U.S. is clear. As several reports have shown, American’s have very little financial literacy. It’s only just catching on in schools to teach personal finance. Companies such as Edfinancial are filling this educational gap — particularly among younger borrowers.
By providing tools and information, Edfinancial is part of a larger movement — the effort to develop a financial literate population that understands how to manage debt, create wealth and make informed decisions.
Financial Ed and Student Loans: Avoiding Common Mistakes
Whether Edfinancial is your servicer or you’re dealing with a different one, knowing about these common servicer mistakes can help you prevent an error from costing you time or money:
Ignoring Loan Statements
While it might seem like keeping your head in the sand about loan balances is the best approach, being in the know is the only way to prevent missed payments or racking up unnecessary interest.
Forgoing Forgiveness Programs
Edfinancial can assist with Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. Not pursuing these opportunities could be leaving money on the table.
Neglecting to Keep Info on Income Current
If you’re on an income-driven repayment plan, it’s imperative to update your income every year. Failing to do so could lead to paying more of your taxes or being kicked out of the plan.
Not Seeking Help When You Need It
Before you default, though, talk to Edfinancial. They provide choices, such as forbearance, deferment and plan modifications, that can keep your credit unscathed.
Final Thoughts
That’s more than just a snappy catchphrase, it’s an important base for all who must meet the world of personal finance, and particularly people who are dealing with student loans. “Edfinancial is in an enviable position to provide both guidance and education as a trusted student loan servicer. Offering a variety of flexible and innovative solutions, Edfinancial is passionate about helping borrowers successfully manage their student loan debt while finding a way to create a healthy financial future.
For both students who are just getting started and recent graduates who want to get a better handle on their finances, investing time in financial education can pay lifelong dividends. With a coach like Edfinancial, learning the basics of Financial Ed is a whole lot easier.
