How to Manage Your EdFinancial Services Student Loans

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After four years (or more) of classes, late nights studying, and cramming for finals, the last thing you want to worry about is your student loans. However, your federal loan grace period will be over before you know it and you’ll have to start making payments.

Knowing who your loan servicer is and what kind of services it offers can help you manage your debt more effectively. And if you’re in a tight spot, your loan servicer can identify ways to make your payments more affordable while you get back on your feet.

If your federal loan servicer is EdFinancial Services, here’s how to use its online platform and find out about alternative repayment plans.

What is EdFinancial Services?

Loan servicers are an important part of managing your loans. Your loan servicer is not the lender; instead, the servicer is who you make payments to and who you go to with questions about your repayment plan or your account.

EdFinancial Services is one of nine companies that services federal student loans. You don’t get to choose EdFinancial Services or any other federal loan servicer. Instead, the Department of Education selects one for you.

Added to the list of designated federal loan servicers in 2012, EdFinancial Services manages student loans within the Direct Loan program, including:

  • Direct Unsubsidized Loans
  • Direct Subsidized Loans
  • Direct PLUS Loans
  • Direct Consolidation Loans

EdFinancial Services also manages loans through the Federal Family Education Loan program and some private loans.

Using the EdFinancial Services online platform

Most students manage their student loans serviced by EdFinancial Services online through the company website.

To sign up for an account, click on “Register” at the top right of the screen. The site will prompt you to enter your Social Security number, birthdate, and name before asking you to create a username and password.

ed financial student loans

Image credit: EdFinancial Services

By registering for an account, you can find out your loans’ balances and interest rates, receive bills, and make payments online. The site has additional resources for borrowers on their website, such as a blog with information about repayment options and loan forgiveness.

EdFinancial Services repayment options

If you’re ready to start making payments, EdFinancial Services allows you to do so in the following ways:

    • Online: You can make one-time online payments once you register for an account.
    • Automatic payments: Some borrowers might be able to get a 0.25 percent interest rate discount on their loans by signing up for automatic monthly payments.
    • Phone: You can make payments over the phone by calling 1-855-337-6884.
    • Mail: To mail payments for your Direct Loan, send a check to: U.S. Department of Education, P.O. Box 105193, Atlanta, GA 30348-5193.

Alternative payment plans for EdFinancial student loans

If you cannot afford your federal Direct Loan payments or are going through a financial hardship, EdFinancial Services might be able to help you with an alternative payment plan, such as:

    • Income-driven repayment: Under an income-driven repayment plan, the government caps your monthly payment at a percentage of your discretionary income. Depending on your income and family size, your payment could dramatically decrease.
    • Forbearance or deferment: If you’ve lost your job, are facing a medical emergency, or cannot afford your payments, you might be able to postpone making payments for up to 12 months without entering into default.
    • Student loan forgiveness: If you’re a teacher or work for a qualifying nonprofit, you could be eligible for Public Service Loan Forgiveness (PSLF). Under this program, the government forgives your remaining loan balance after you make 10 years of qualifying payments.
    • Discharge: In some cases, the government might discharge your loans if there are extenuating circumstances. For example, if you become disabled, you might be eligible for Total and Permanent Disability Discharge.

EdFinancial Services customer reviews

Federal loan servicers are under intense scrutiny due to concerns about how they handle borrower issues and payments.

The Consumer Financial Protection Bureau reported that it received 12,900 complaints about federal loan servicers in just one year. That’s a big deal, especially because you’re not able to choose a servicer or switch to a new federal servicer if you’re unhappy with the assistance you receive.

Further, there are 34 public complaints about EdFinancial Services student loans with the Better Business Bureau, as of January 2018. Most customer complaints concern problems with billing, such as the company reporting payments as late when they were on time or delays in receiving verification letters.

However, many issues are actually the result of errors on the borrowers’ end. For example, some of the complaints are about the loan balance being larger than they originally borrowed, with the borrower not realizing that interest accrued while the loan was in forbearance or deferment. Others complain about not receiving a bill, but they forgot to update their address with the servicer.

To protect yourself against similar problems, it’s important to ensure your account information is up to date with your latest mailing address and phone number. If you have to contact EdFinancial Services, record the date, time, and name of the representative you speak with to record any issues or problems and their resolutions.

Unhappy with your student loan servicer?

If you’re unhappy with EdFinancial Services or any other federal loan servicer, you can’t switch to a different servicer. However, you can opt for a private lender by refinancing your federal loans.

When you refinance, you take out a new loan with a private company and use it to pay off the old ones. The new loan will have different repayment terms, including interest rate and minimum monthly payment. You’ll have an entirely different loan servicer and customer service team.

Before refinancing your student loans, make sure you understand the pros and cons. You’ll lose out on some federal loan benefits, such as income-driven repayment plans, for example. But some people find it worthwhile to get a new servicer or lower interest rate.

If you’ve decided student loan refinancing is an interesting option for you, check out our list of the best refinancing lenders.

Interested in refinancing student loans?

Here are the top 6 lenders of 2020!
LenderVariable APREligible Degrees 
1.99% – 5.64%1Undergrad
& Graduate

Visit Earnest

1.89% – 5.90%2Undergrad
& Graduate

Visit Laurel Road

2.25% – 6.09%3Undergrad
& Graduate

Visit SoFi

1.89% – 6.77%4Undergrad
& Graduate

Visit Splash

2.39% – 6.01%Undergrad
& Graduate

Visit Elfi

1.99% – 5.41%5Undergrad
& Graduate

Visit CommonBond

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of July 31, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 7/31/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


2 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of September 9, 2020. Information and rates are subject to change without notice.
 


3 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 2.99% APR to 6.09% APR (with AutoPay). Variable rates from 2.25% APR to 6.09% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.18% plus 2.32% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 

4 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of September 10, 2020.


5 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. ‍All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.16% effective August 10, 2020.

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.