What you need to know:
- Edfinancial Services was one of five loan servicers awarded a contract by the Department of Education in 2020 to service federal student loans going forward.
- It was one of only two previous federal loan servicers (the other being MOHELA) that was awarded a new contract.
- Edfinancial Services ranked fourth on Student Loan Planner’s list of best federal loan servicers.
Edfinancial Services is one of five loan servicers chosen by the U.S. Department of Education to service more than 68 million student loan borrowers. Based in Knoxville, Tennessee, Edfinancial Services is not new to servicing federal loans because it was already awarded a similar contract in 2012. That doesn’t mean it’s necessarily a good loan servicer, though.
Here’s a detailed look at Edfinancial student loan servicing and what you should be aware of if it’s your new loan servicer.
What is Edfinancial Services?
Edfinancial Services is a private for-profit, financial company with over 25 years of experience in the student loan industry. In addition to servicing student loans for the federal government, Edfinancial Services also handles private student loans.
In 2010, Edfinancial launched a Higher Education Solutions division, now named Edamerica, that provides third-party services to colleges and universities. Services offered include:
- Contact support
- Student engagement
- Default prevention
- Consulting services
- Financial aid support
Student loan servicers don’t originate any student loans themselves. Instead, they manage student loan payments and provide support to borrowers. If you have federal student loans already, Edfinancial Services may be your current loan servicer.
Edfinancial Services customer feedback
Edfinancial Services has been servicing federal student loans for years, and in that time, it has developed a reputation for poor customer service.
On the surface, Edfinancial Services seems like a reputable student loan servicer — for example, it has an A+ rating with the Better Business Bureau. But based on our survey of the best federal student loan servicers, Edfinancial Services ranked fourth out of nine servicers.
To provide context for that ranking, however, Edfinancial doesn’t serve the volume of student loans that other servicers do.
In our most recent Student Loan Planner Loan Servicer Survey, only four respondents had Edfinancial student loans. By comparison, we had 176 respondents who had loans serviced by Fedloan Servicing. Of the four responses about Edfinancial, one person said the servicer was only informative when it benefited the company. Another respondent suggested that Edfinancial’s customer service reps were uninformed.
Currently, there are only 12 complaints about Edfinancial Services in 2020 in the Consumer Financial Protection Bureau’s Consumer Complaint Database. The low number might be attributed, however, to the pause on federal student loan payments through September 30, 2020, under the CARES Act. Among the complaints listed, though, are issues with how payments are applied and errors reporting payments to credit bureaus.
Edfinancial Services is a ‘middle of the road’ servicer
As mentioned earlier, we ranked Edfinancial Services No. 4 on our list of the best student loan servicers. Part of that ranking was a lack of data compared to other servicers.
Student Loan Planner founder Travis Hornsby said, “Their track record doesn’t suggest they know [Income Driven Replacement] and can explain it well. However, they don’t have the glaring complaints per million borrowers that some of the other [loan servicers] do.”
What to do if Edfinancial Services is your new servicer
If you have student loans moved to Edfinancial Services, you should receive a letter to inform you of the loan transfer. Set up your online account with Edfinancial Services as soon as possible and start making payments. Your loan terms don’t change, but you may lose access to previous payments and other information from your prior servicer.
Edfinancial Services and your old loan servicer are supposed to partner together for a smoother transition, but, based on most federal loan servicers’ track records, that doesn’t always happen.
Take time to make sure your loan information is correct and that all payments made during the transition period (if you continued to make payments) are correctly handled, especially if you need to track payments for student loan forgiveness. A good tool you can use for comparison is the National Student Loan Data System, which gives you a detailed look at any student loans you’ve taken out.
How to contact Edfinancial Services about your student loans
Edfinancial Services offers several ways for previous and new borrowers to get support:
Phone support:
Direct Loans (inquiries and payments): 1-855-337-6884
FFELP & Private Loans (inquiries): 1-800-337-6884
FFELP & Private Loans (payments): 1-866-709-0202
Military Members: 1-800-337-6884 or 1-855-337-6884 (option 4)
Business hours are Monday through Thursday, 8 AM – 8:30 PM (EST), and Friday, 8 AM – 6 PM (EST).
Mailing a payment:
For Direct Loans, mail payments to:
US Department of Education
P.O.Box 4830
Portland, OR 97208-4830
For FFELP and private Loans, mail payments to:
Edfinancial Services
Department 888055
Knoxville, TN 37995-8055
Email Support:
Borrowers can also send general inquiries by email to Edfinancial Services through a contact form on its website.
Military members can reach Edfinancial Services by emailing military@edfinancial.com.
Fax Support:
Borrowers have the option to submit documents to Edfinancial Services by fax as well using one of the following numbers.
Direct Loans: 800-887-6130 (toll free) or 865-692-6348.
FFELP and private Loans: 800-887-5936 (toll free) or 865-692-6386.
Military members: Fax: 866-425-2473 (toll free) or 865-692-6376.
Online chat support:
Edfinancial Services doesn’t currently offer chat support on its website for student loan borrowers.
Edfinancial Services FAQs
Is Edfinancial a federal student loan?
No, Edfinancial Services is a federal loan servicer for the Department of Education. It has been a federal loan servicer since 2012 and was recently awarded a new contract to continue its service to federal borrowers. It does not issue student loans.
Is Edfinancial real?
Yes, Edfinancial is a real federal loan servicer. If you already have federal student loans, you may have recently received a letter from Edfinancial Services stating that it is your new loan servicer. You’ll need to establish an online account with Edfinancial Servicesand set up payments to remain in good standing. Even if your loan is transferred, if the federal pause in student loan payments under the CARES Act is still in effect, you will still get the relief of the loan payment pause.
How do I pay my Edfinancial loan?
Borrowers can make loan payments through Edfinancial Services in several ways, including:
- KwikPay automatic payments
- Online payments
- Through your bank or financial institution’s bill pay service
- Mail-in payments
- Pay by phone
Does Edfinancial have an app?
Edfinancial Services doesn’t currently have a mobile app for its customers.
Navigating Edfinancial Services student loans
Whether you’ve had loans serviced through Edfinancial Services for a while or it was recently assigned as your new servicer, you should understand your options going forward. Unfortunately, you can’t choose your loan servicer unless you consolidate your loans into a Direct Consolidation loan. Even then, there’s no guarantee that the servicer you choose will offer a better experience than your last one.
Refinancing your student loans may be a viable solution, but typically our experts recommend private student loan refinancing as a last resort. When refinancing with a private lender, you’ll lose access to important federal protections, like repayment plans and student loan forgiveness programs.
You have options. Student Loan Planner has helped over 4,000 clients tackle more than $1.05 billion of student loan debt. We work alongside you to create a customized repayment plan that makes sense for you. Reach out today to book a call with one of our experienced student loan consultants.
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