Edfinancial services student loan reviews

If you have received Edfinancial services as your student loan servicer then you should read this review as it gives an overview of payment & repayment plans. Also read the Pros and Cons of Edfinancial servicers for student loans.

Updated by Sagar.C on 11th June 2019

Edfinancial is a student loan servicer which was started in Knoxville, Tennessee in the year of 1987 to assist people with student loans. It was formed to serve as a student loan servicer for the southeastern region. In 2012, they were granted to provide student loan contract and since then they made Federal Loans Servicing their prime goal.

They also include servicing of some of the private loans. It is not authorized by the federal government, but they are one of the loans servicers of federal loans. 

If you have federal student loans and you land up with EdFinancial as your assigned loan servicer, at that point you may find that their website offers many instruments and resources to enable you to perceive the knowledge to manage your student loans.

What is special about Edfinancial Servicers?

Edfinancial is a legitimate organization. The tools and resources aren't one of a kind to EdFinancial, however, their website is easy to scroll and you will quickly find out resources that you need to understand and manage your loans.

Their student loan calculator tool is quite handy for borrowers. Through that tool, you can find many repayment options. You can also analyze how much interest you will have to pay and what would be your repayment term for your loans.

If you have a military based background and you have served the country then you have a whole separate page dedicated to you. They offer different benefits and repayment options for borrowers from a military background. You will be assigned a unique email address and customer service line.

Edfinancial phone number 

The organization can be reached out at two different numbers for different queries. If you have concerns relating to direct loans, contact on 1-855-337-6884 and for issues pertaining to Private loans, reach out on 1-800-337-6884.

Table of Contents

Loans under Edfinacial servicer

There are 9 players in the U.S. which serve as student loan servicers, and one of them is EdFinancial student loan services. Just like other servicers, it handles Direct Student Loan programs which are the following.

  • Direct Unsubsidized Loans

  • Direct Subsidized Loans

  • Direct PLUS Loans

  • Direct Consolidation Loans

The unique thing about this servicer is that they handle loans within the Federal Family Education Loan Program. They have also engaged their services for some private student loans.

EdFinancial payment methods 

Once your application gets approved, the next step is to understand the different payment methods. You can make payments for Edfinancial services by the following methods.

By Phone

To make the payments for private loans, contact on 1-866-709-0202. For Direct loan payments, contact on the number given above for federal loans.  


When you register for your account you can make your one-time online payment at that point.

By mail

You can any day mail your payments by sending a check to the given address below.

U.S. Department of Education

P.O. Box 105193,

Atlanta, GA 30348-5193.

Automatic payments

You can sign up for automatic payments. For this, you will get the benefit of 0.25% on your interest rate. The payment will be deducted automatically from your personal account every month.

For other queries, you can contact them on -

Edfinancial address  - 120 N Seven Oaks Dr, Knoxville, TN 37922

Repayment Plans

1 - Income-driven repayment plans

The income-driven repayment plan is carved to decrease your monthly payments on student loan debt. It reflects loan repayment amounts on the bases of your income, federal student loan debt, and family size.

If you apply for repayment plans, you may go with the process of forbearance which gives you time to get all the relevant documentation to determine your eligibility. Once you get an approval for income-driven repayment plan then your amount will be reduced and it will be valid for 12 months. This plan needs to be approved every 12 months.

a) Revised Pay As You Earn (REPAYE)

In this repayment program, your interest gets subsidized which will help you to control your loan balance.

They are flexible with the disbursement date there no restrictions on it with REPAYE. For undergraduate loan, your repayment should be made in 20 years and for graduate loans, in 25 years.

By looking at your family size, income, and current federal debt, this program will lower down your monthly payments.

b) Income-Contingent Repayment

ICR generally permit borrowers to make their payments based on their income, family size and current federal debt. 20% of their discretionary income will go towards the payment and they will have 12 years of time to repay the total amount if they use standard amortization based on their yearly gross income.

Once you have made monthly qualifying payments for 25 years, your remaining debt is eligible for forgiveness.

[Learn more about Income-driven repayment plan and its types

2 - Public Service Loan Forgiveness (PSLF)

After making 10 years of qualified payments, or 120 payments, the government tends to forgive the remaining loan amount if you're working in a non-profit or public sector. It is only available for federal student loans. Some of the professionals who can opt for this are nurses, teachers and more.  

3 - Discharge

In case of permanent disability, you might be granted a discharge under permanent disability discharge. There are several other kinds of loan discharge available for you such as closed school discharge if your school closes while you're studying there, are bankrupt, got involved in a theft and more. 

4 - Forbearance or Deferment

If you can't pay your loans then there are other options to opt for such as Deferment or Forbearance. It allows you to take more time on your repayments by placing a temporary suspension on it.

Generally, Deferment is a good option than Forbearance. You may ask why? It is because if you apply for Deferment and you receive it then your Subsidized Loan, the interest on your loan will be taken care of by the federal government. The eligibility aspect for Deferment is based on in-school deferment, unemployment deferment or income.

If you don't qualify for a deferment, you can go for forbearance. Under forbearance, any loan type will accrue interest daily. You may qualify for forbearance on hardship forbearance or your income or loan debt burden forbearance.

[Learn more about Deferment and Forbearance and how it impacts student loans ]


Repayment with EdfinancialSource: pexels.com

Benefits of EdFinancial Services

When you have applied for Federal Loans and you land up with EdFinancial servicer, then you should visit their website which provides you ample amount of information regarding loans. It is designed in such a way that borrowers can easily scroll through relevant topics and pieces of information.

One of the tools which they have is student loan calculator which gives you an idea on repayment options and show you calculations regarding interest to be paid.

There is an entire page for on military benefits, if you have served or currently serving the country then there are lots of benefits and repayment options for you.


Edfinancial servicers have received 12,900 complaints in one year. The Consumer Financial Protection Bureau usually receives these complaints from consumers.

Even the Better Business Bureau has received 34 complaints regarding the organization. Most of the complaints are regarding their billing process.

It's not always Edfinancial's fault, sometimes it is borrower's fault as well. Many cases happen when a customer makes a complaint regarding having more payment balance then they borrowed but they don't calculate the interest accrued under deferment or forbearance

Many borrowers also forget to update their billing address in case of changing their residence.

So, to dodge these type of problems you need to make sure your account details are up to date with your current phone number and mailing address. You should always be smart when you make a call to Edfinancial services by keeping the record of time, date and the name of the representative you spoke with.

Issues with servicer

1 - Loan Transferring process complaints

As you don't get to choose which servicer you will receive for your student loans so you have no other choice than that. On top of that, you can't have control over changing the servicer. The servicer will automatically get changed.

During this process many borrowers face problems. Several borrowers have reported that Edfinancial has transferred their loan to a different servicer. They reported credit bureaus that the loans were delinquent loans transferred from EdFinancial to another servicer, and are being reported incorrectly. As wrongly reported by EdFinancial, the borrower's credit got tanked. 

There was another case where the borrower was in their in-school deferment period and their servicer was transferred and Edfinancial had reported the loan as delinquent. The new servicer received and accepted the loan and reported it as current.

This type of complaints arises only when the company is not careful in reporting the forbearance and deferment loans.

2 - Slow Customer Service

What if suddenly you have a huge financial change in your life? It will raise your financial problems and it will affect your loan payments too. Fortunately, you have income-based repayment plans for this. Under Edfinancial student loan servicer, many borrowers have reported that due to bad customer service their application process for IBR has been quite slow.

One of the borrowers has reported that her application was rejected wrongly though she provided relevant documentation.

Slow Customer ServiceSource: pexels.com

3 - On the other hand excessive phone calls

Edfinancial services tend to frustrate borrowers by calling continuously if their loans have gone into default. In one of the case, the borrower had gone delinquent on his loans and the company kept calling his Ex-spouse. After getting frustrated, she requested to be taken off the call list but they refused to do so and kept calling her.

4 - Problem with Loan Payments

There are some complaints related to loan payments for not getting charged properly on the principal loan amount. The principal amount is paid at the end after you pay all the outstanding fees and interest.

There was one complaint regarding the principle wrongly misapplied on the loan. One of the consumers had gone through the online payment service of Edfinancial’s which is Kwikpay.

After having a 20 minutes phone call with a representative to make the adjustment, the borrower used Kwikpay.

Prior to completing all the required process, the borrower applied for the loan and checked the account, and was charged for two loans when he just applied for one.

After making several phone calls, it got rectified.


The only drawback of getting a Federal student loan is that you don't have the rights to choose your servicer. This is not good news for borrowers because if you face any problems with Edfinancial then you can't do anything. You have no options to change your servicer.

However, on the bright side, they have a good website and their representatives are always ready to help borrowers to find the best repayment options.

You should always keep a close eye on your accounts and credit report to be sure that payments are charged in an appropriate way.

[ Also Read: How to get a student loan ]


  Is EdFinancial a Federal student loan?

EdFinancial which is also Known as HESC is a student loan servicer formed in Knoxville, Tennessee in the year of 2012. It was granted by the government to service Federal student loans.

  Is EdFinancial real?

Yes, they work along with 15 other leading U.S. lenders which includes private banks and state agencies.

  Is EdAmerica the same as EdFinancial?

Yes, Edfinancial Services is also known as Education Services of America, Inc.(EdAmerica) and it also called as Educational Funding of the South Inc. (Edsouth)

  Can I make payments via automatic debit?

They have direct payment provider called KwikPay which will deduct your payments automatically.

  Is EdFinancial safe?

Yes, they are. They can come as your loan servicer if you have taken a Federal student loan.

  Can I pay EdFinancial with a credit card?

There is no credit card payment option with EdFinancial servicer.

  Can I postpone payment of my loan?

You always choose the option of Deferment and Forbearance.

  My last name changed. How can I update this?

Through your account, you can upload a written request and upload documentation related to name change by logging in to managing my account. Your documentation should contain court order, marriage or divorce decree, your driving license or security card. You can also fax or mail the documentation with your account number and a written request.

  What is REPAYE Plan?

REPAYE plan means Revised Pay As You Earn as is repayment program which gives you benefits on interest by subsidizing it on the basis of your income, family size and current federal debt