Lori Meadows
Edfinancial Services is a student loan servicer that has been in the student loan industry for over 30 years. They provide customer service on behalf of the lender, including answering borrower questions, helping with repayment plans, and processing loan payments. Edfinancial Services manages billing, questions, and payments for Federal Student Aid (FSA) and helps borrowers enroll in the best repayment plan for their needs. Borrowers can make payments online or through their bank, and they can also set up Auto Pay to automatically withdraw payments from their bank account each month. To pay off the remaining balance of a student loan with Edfinancial, borrowers can log into their online account and select the Custom Pay option.
| Characteristics | Values |
|---|---|
| Headquarters | Knoxville, Tennessee |
| Years in the student loan industry | Over 30 years |
| Services | Customer service, answering questions, helping with repayment plans, processing student loan payments |
| Federal loan provider | Federal Student Aid (FSA) |
| Interest accrual method | Simple daily interest method |
| Payment methods | Auto Pay, online payment |
| Payment allocation | Outstanding interest, then principal balance |
| Loan forgiveness | PSLF program for qualifying employers |
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What You'll Learn
How to pay off multiple student loans
Paying off multiple student loans can be a challenge, but there are ways to manage it. Here are some steps to help you tackle multiple student loans and work towards financial freedom.
First, get organized and understand your loans. List all your student loans, including federal and private loans, with details such as the loan servicer, statement balances, interest rates, and monthly payments. Federal Student Aid (FSA) is your federal loan provider, and they use servicers like Edfinancial Services to manage billing, payments, and repayment plans. You can log into your Edfinancial online account to view your loan details and make payments. Knowing your loan details will help you understand your current financial situation and set realistic monthly payment goals.
Next, consider your repayment options. The two popular methods for paying off multiple loans are the debt avalanche and debt snowball methods. The avalanche method focuses on paying off the loan with the highest interest rate first while making minimum payments on the others. The snowball method targets the loan with the smallest balance first, gradually moving to larger loans. Both methods can help accelerate debt payoff. Additionally, explore special repayment programs that may be available, such as interest rate reductions for automatic electronic payments or loan forgiveness programs like PSLF for qualifying employers.
When deciding which loan to prioritize, it is generally recommended to tackle private student loans before federal ones. Private loans often have higher interest rates and less flexibility in terms of deferments or income-based repayment plans. However, consider your specific financial situation and the benefits associated with each loan. For example, if you're eligible for loan forgiveness on federal loans, you may want to focus on private loans instead.
Finally, if you have multiple private student loans, consider refinancing. Refinancing allows you to combine several loans into one, potentially qualifying you for a lower interest rate if your credit has improved. While refinancing federal loans into private ones is possible, it may result in losing certain federal loan benefits.
Remember, the key to successfully paying off multiple student loans is understanding your loans, exploring repayment options, and creating a strategy that aligns with your financial goals.
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Payment methods
Edfinancial Services offers a variety of payment methods for paying off student loan balances.
Firstly, you can log in to your online account and select the "Custom Pay" dropdown button. If you want to pay off all your loans, select "Auto Allocate", and sum up the current balance for all your loans for the payment amount.
Secondly, you can set up Auto Pay, which automatically withdraws payments from your designated bank account each month. You can make changes to your Auto Pay by signing in to your online account, selecting Auto Pay from the navigation menu, and updating your bank account information.
Thirdly, you can make online payments through your bank or another online bill pay service. Ensure that your service is updated with the correct account number and payment address, which can be found on your billing statement or by logging into your online account.
Finally, you can review and adjust your monthly payment amount using the StudentAid.gov Loan Simulator to understand how different payment amounts affect the total interest paid over the life of your loan. Additionally, it is important to note that being "paid ahead" on your account has no effect on how your payments are applied to the principal and interest balance. Payments are posted to your student loan account within three to five business days and are effective for your due date.
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Loan forgiveness and discharge options
Edfinancial Services is a student loan servicer that provides customer service on behalf of your lender, including answering your questions, helping with repayment plans, and processing student loan payments. Federal Student Aid (FSA) is your federal loan provider, and it uses servicers like Edfinancial to manage billing, questions, and payments, and to help you enroll in the best repayment plan.
Public Service Loan Forgiveness (PSLF)
PSLF is a federal program that forgives the remaining balance on your Direct Loans if you work full time for a qualifying employer (a government or not-for-profit organization) while making 120 qualifying payments under qualifying repayment plans. To be considered for PSLF, you need to submit a PSLF form, which can be done easily using the PSLF Help Tool. This tool allows you to check your employer's eligibility, prepare and sign your form, and request certification from your employer.
Teacher Loan Forgiveness Program
If you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, you may be eligible for forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans, and your Subsidized and Unsubsidized Federal Stafford Loans.
Parent PLUS Loan Discharge
Certain portions of a Parent PLUS loan may be discharged if the student for whom the loan was borrowed couldn't complete their program due to school closure, false certification of eligibility by the school, or if the school didn't refund loan money after the student's withdrawal. Additionally, if you reach 25 years in repayment on a Direct Consolidation Loan on the Income-Contingent Repayment (ICR) Plan, or if you work in public service and apply for PSLF, you may be eligible for discharge.
Income-Driven Repayment (IDR) Plans
These plans can lower your monthly payment amounts and give you more time to pay back your federal loans. IDR plans must be renewed annually and can be accessed at StudentAid.gov/IDR.
For a comprehensive list of loan forgiveness, cancellation, and discharge options, visit Student Loan Forgiveness. Additionally, if you've been impacted by a federally declared natural disaster, you may be eligible for assistance, such as temporarily postponing your payments.
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Interest accrual
Most student loans, including all federally guaranteed loans, use a method of interest accrual known as "simple interest". This is different from compound interest, which is the type of interest that accrues on most major credit cards. Simple interest is only calculated on the principal balance, not on previously accrued interest. Interest accrues daily on your loan, including times when a payment is not required to be made, such as during deferment, forbearance, grace, and in-school statuses.
To calculate your daily interest accrual, use the following formula: (Current Principal Balance x Interest Rate) ÷ 365.25 = Daily Interest. For example, if your current principal balance is $20,000.00, your interest rate is 4.50%, and you want to calculate your daily interest accrual for 30 days, the calculation would be as follows:
[(20,000 x .045) ÷ 365.25] x 30 = $73.92
You can view your interest accrual information at any time by logging into your online account and viewing your loan details. Your current principal balance, interest rate, and the number of days between payments will determine the amount of interest that accrues each month. When a payment is received, it is first applied to accrued interest, and any remaining payment is then applied to the principal balance.
It is important to note that capitalization can occur when unpaid accrued interest is added to your unpaid principal balance, increasing the total cost of your loan. Additionally, if you are serving in the military, you may be eligible for the Military No-Interest Accrual (MNIA) benefit during certain types of active duty, which can waive interest on your Direct Loans for up to 60 months.
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Online account setup
To set up an online account with Edfinancial, you should first check your email inbox or mailbox for a notification from Edfinancial. Once you've received this, you can create your new online account at Edfinancial.StudentAid.gov/MyAccount. You will need your social security number to hand and will be asked to confirm demographic information.
Once you've logged in, you'll be able to view your new account number under the "Profile" tab. Your online account is where you can find your student loan details, personalized information, and resources at any time of day.
If you're looking for loan payoff information for specific loans, your online account is the quickest and easiest way to retrieve a payoff quote. You can log into your online account and select the "Custom Pay" dropdown button. If you want to pay off all your loans, select "Auto Allocate", and sum up the current balance for all your loans for the payment amount.
You can make changes to your Auto Pay by signing in to your online account and selecting Auto Pay from the navigation menu. Here, you can change bank account information, add an additional amount to apply monthly, or cancel your Auto Pay. If you make your student loan payments through your bank or another online bill pay service, ensure your service is updated with the correct account number and payment address. You can find your account number and payment address on your billing statement or by logging into your online account.
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Frequently asked questions
You can pay off your student loan balance with Edfinancial by logging into your online account and selecting the "Custom Pay" dropdown button. Then, select "Auto Allocate" to pay off all your loans. You can also pay through your bank or another online bill pay service.
You can find your payoff quote by logging into your online account. You will also receive periodic updates on your outstanding balance and payment due dates.
You can reduce your monthly payments by keeping them at 8-10% of your monthly income or less. You can also change your Auto Pay settings by signing into your online account.
You can pay off your student loan balance faster by making payments at any time to apply towards any outstanding interest and reduce your principal balance. You can also enroll in a loan forgiveness program, such as PSLF, to forgive the remaining balance on your loans.
