Student loan -- Dealing with your lender or servicer -- Complaint #5941759

Complaint Overview

Complaint ID: 5941759

Company: Edfinancial Services

Product: Student loan

Sub-Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Sub-Issue: Trouble with how payments are being handled

State: New York

ZIP Code: 11106

Date Received: 2022-09-01T12:00:00-05:00

Date Sent to Company: 2022-09-01T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

I contacted Edfinancial, my federal loan service provider, on Friday, XX/XX/2022 after the government announced student loan forgiveness. I make below the income needed to qualify for forgiveness and I received a XXXX XXXX so I would qualify for the full $ XXXX forgiveness. During the pandemic, I made {$9700.00} worth of payments. The Federal Student Aid website explains that I can request a refund for all payments I made during the pandemic due to the CARES Act. The refund would reinstate my loan balance on Edfinancial so it could then be forgiven as part of Bidens Loan Forgiveness plan. I understand actually cutting the check would take longer since it comes from the government but its Edfinancials role to ensure the request is submitted in a timely fashion and that the balance is reinstated promptly. That Friday, I called Edfinancial to make the refund request. They said the refund timeline would take a minimum of 150 days. This processing time is completely different from that of every other servicer. XXXX, XXXX XXXX, XXXX, and XXXX are other loan servicers and are quoting 3-8 weeks turnaround time. I also know people with accounts at these services and they are already seeing the balance reinstated on their accounts. I called Edfinancial a week later on Thursday, XX/XX/2022 and asked to confirm when the balance would be reflected back in my account ( again, its my understanding that the government issues the funds, but the loan servicing provider reinstates the balance on their own accord ). Once again, Edfinancial said it would take a minimum of 150 days and that they would ONLY reinstate the balance after the check was cut by the government. They also blamed the government for why they cant reinstate the balance on my account more quickly even though other loan servicing providers do not have to wait for the government to reinstate balances. This is worrying for me since the balance has to be reinstated for forgiveness to occur. This means that I wouldnt see the balance on my account until XXXX at the earliest, which would be when interest rates and payments would resume. Additionally, Edfinancial is not able to provide confirmation on any of this. They said they will not provide written confirmation that the refund request has been put through. Again, they are the ONLY student loan provider that is providing this long timeline. Other loan servicing providers are already reinstating balances on accounts after a few days, but Edfinancial is saying this will take 5-6 months to a year. I understand that Edfinancial has a lot of requests coming in but so do the other providers. It's concerning that Edfinancial appears to be misleading consumers with these long payment timelines that would put consumers at risk for losing loan forgiveness.

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Disclaimer

This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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