Student loan -- Dealing with your lender or servicer -- Complaint #7751905
Complaint Overview
Complaint ID: 7751905
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: Illinois
ZIP Code: 60607
Date Received: 2023-10-24T12:00:00-05:00
Date Sent to Company: 2023-10-24T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: No
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I have never missed a student loan payment. I have always ensured that each payment I made was sufficient to cover the interest being charged and prevent the loan balance from growing via negative amortization. I made my first student loan payment ( since the pause ended ) on XXXX. I paid {$550.00}, more than the minimum payment. I have 4 loans totaling $ XXXX with a weighted average effective interest rate of 5.7 %. Based on this, I expected my first-month interest charge to be {$230.00}. And therefore {$550.00} - {$230.00} = {$310.00} would be applied to principal. EdFinancial applied {$340.00} of my payment to interest and only {$200.00} to principal. I am not sure how this could be possible given that I have never missed a payment or paid an amount that would result in interest accruing or negatively amortizing. This is an effective interest rate of 8.4 %, which is quite simply... outrageous. I have no idea how this could possibly happen. I want an explanation from the servicer to explain how they arrived at this interest charge. And their customer service has been completely unresponsive.
Frequently Asked Questions
What is Complaint #7751905 about?
Complaint #7751905 was filed against Edfinancial Services regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2023-10-24T12:00:00-05:00.
How did Edfinancial Services respond to this complaint?
The company responded with: "Closed with explanation". The response was not timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Student loan) and describe your issue in detail.
Can I see other complaints against Edfinancial Services?
Yes, visit the Edfinancial Services company profile at readthecomplaint.com/company/edfinancial-services to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.