EdFinancial Services – CFPB Complaint 2018-10-27

Date Received: 2018-10-27

Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: I have been trying for over a year to pay the compounding interest on my federal student loans from Edfinancial. As I am a current student, I have no principal payments due, but I have been trying to make regular payments on my interest in order to prevent it from compounding to large sums by the time I have to make payments on the principal amount. I made several payments online to Edfinancial – in XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX – and only after the third payment realized that they were not being applied to my interest but rather to the principal amount. I called Edfinancial ‘s customer service and was told that they have a policy by which interest can not be paid within 120 days of any loan disbursement, meaning that my payments would only be applied to the interest after 120 days had passed following my most recent disbursement. The representative I spoke to told me there was no way around that rule.
I, however, attend a university that follows a trimester schedule, meaning that we have three terms per academic year, each lasting ten weeks and with no more than six weeks of break between them. This means that there is no point during the academic year in which 120 days can pass between loan disbursements, as I receive a new disbursement at the beginning of each trimester. Thus the first and only time I was able to make any sort of interest payment on my loans was on XX/XX/XXXX, at which point my interest had risen to {$150.00} – precisely what I had been trying to avoid by making early and frequent payments. In the time since I made that payment, my interest has again risen to nearly {$40.00}, and I have no way of making a payment towards it. I again contacted Edfinancial in early XXXX of this year, this time via their customer service email line, expressing my continued frustration at their intentional hindrance of my ability to pay my interest and indicating again that there is no time between the 120-day period in which I could pay any interest. Their customer service failed to contact me back.
I have also gone to my university ‘s financial office and spoken to them about this issue, who echoed my sentiment that it is a right of mine to be able to pay my interest and it is unjust of Edfinancial to preclude me from doing so. They, however, were unable to assist and instead encouraged me to pursue these means of resolving this issue.

See also  BANK OF AMERICA, NATIONAL ASSOCIATION - CFPB Complaint ID 2875361

Company: EdFinancial Services

State/Zip: MD 209XX

Company Response to Complaint: Closed with explanation

Was Company Response Timely: Yes

Did Consumer Dispute Company Response: N/A

Complaint ID: 3058246

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