Edfinancial Loan Refinancing: Is It Right For You?

Edfinancial Services is a private company that services federal student loans. The company helps students manage billing, questions, and payments, and also helps them enroll in the best repayment plan. Edfinancial Services does not originate federal student loans. However, it offers a range of repayment options, including loan forgiveness and consolidation.

Edfinancial does not originate federal student loans

Edfinancial Services is a student loan servicer. This means that they are a private company that the Federal Student Aid (FSA) uses to manage billing, questions, and payments for federal student loans. The FSA is your federal loan provider.

Edfinancial Services can help you enroll in the best repayment plan for you. There are repayment plans that include loan forgiveness, and several reasons why a loan may be discharged. For example, you may qualify for the Public Service Loan Forgiveness (PSLF) Program. You can also apply for a Direct Consolidation Loan, which combines several federal student loans into one loan with one monthly payment. This can make payments more manageable, but it may also result in the loss of certain benefits, such as cancellation benefits and interest subsidies.

Edfinancial Services can also help you with postponement options. As long as your servicer has your current contact information, you will receive periodic updates detailing your outstanding balance, payment due dates, etc. You can also set up Auto Pay, which automatically withdraws payments from your designated bank account each month.

However, Edfinancial does not originate federal student loans. If you need to apply for additional federal student loans, you will need to go to StudentAid.gov and fill out the Free Application for Federal Student Aid (FAFSA).

Pros and cons of consolidation

EdFinancial Services is a federal student loan servicer that can help you manage billing, payments, and questions about your Federal Student Aid (FSA). They can also help you enroll in the best repayment plan for you. One option they offer is to consolidate your federal education loans into a Direct Consolidation Loan.

Pros:

• Loan consolidation can make it easier to manage your debt by combining multiple debts into one loan with a single monthly payment.
• It can provide access to additional loan forgiveness programs and repayment plans, such as the Public Service Loan Forgiveness (PSLF) Program.
• You can make lower monthly payments by extending the repayment period.
• You can pay off your debt faster by applying for a specific amount to cover your total debt. Lenders will usually pay your creditors directly.
• You can shop around for the best loan terms and interest rates, and many lenders offer prequalification without impacting your credit score.

Cons:

• Consolidation may result in the loss of certain benefits offered on the original loans, such as cancellation benefits, interest subsidies, or loan discharge options.
• If you are close to paying off your loans, consolidation may not be the best option as extending the repayment period will increase the total amount of interest paid over time.
• Consolidation may not address the root cause of your debt, such as overspending on discretionary expenses, and could potentially backfire if not used as a tool to improve your financial standing.
• There may be fees associated with the loan, such as origination or sign-up fees, which can add to the overall cost.
• You will need to qualify for a new credit account, and the approval process may depend on your credit score and financial situation.

Remember to carefully review the loan agreement before signing to ensure you understand all the terms and conditions of the consolidation loan.

Paper loan consolidation application

EdFinancial Services is a private company that acts as a servicer for Federal Student Aid (FSA), the federal loan provider. EdFinancial Services helps students manage billing, questions, and payments, and to help them enroll in the best repayment plan for them.

One option that EdFinancial Services offers is loan consolidation. Loan consolidation can help make payments more manageable by combining several federal student loans into one loan with one monthly payment. There is no application fee to consolidate federal education loans into a Direct Consolidation Loan. However, it is important to note that loan consolidation may result in the loss of certain benefits associated with the original loans, such as cancellation benefits and interest subsidies. If you are close to paying off your student loans, consolidating may not be the best option as it may increase the total amount of interest paid over the life of the loan.

Before submitting a paper loan consolidation application, it is recommended to evaluate how the qualifying payments made on the loans that would be included in the consolidation loan will be credited. It is also important to note that applying for a debt consolidation loan may temporarily lower your credit score, as the lender will need to perform a hard credit check.

To apply for a Direct Consolidation Loan, you can submit a paper loan consolidation application. This can be done by visiting the Federal Student Aid website and downloading and filling out the application form. The form will require information such as your personal information, income, and credit history. Once the form is completed, it can be submitted for review and approval.

Private student loans

Edfinancial Services is a student loan servicer that provides customer service on behalf of your lender. This includes answering your questions, helping you with repayment plans, and processing your student loan payments. They do not refinance loans but they do help students manage their loan payments.

For Private Student Loans, you can locate your lenders by going to AnnualCreditReport.com. As of July 1, 2010, all federal student loans are funded by the federal government through the Federal Direct Loan Program (FDLP). Loan types include Direct Subsidized, Direct Unsubsidized, Direct Parent PLUS, Direct Graduate Student PLUS (Grad PLUS) loans, and Direct Consolidation loans. These student loans have low-interest rates and flexible repayment terms to help students of various economic backgrounds gain access to higher education. There are a limited number of organizations designated by the U.S. Department of Education to service these loans.

FFELP loans were available through private lenders prior to July 1, 2010, and were guaranteed by the federal government. FFELP loan types include Subsidized and Unsubsidized Stafford, Parent PLUS, Grad PLUS, and Consolidation loans. You may have chosen a private lender from a list when you originated your loan.

There are repayment plans that include loan forgiveness, and several reasons why a loan may be discharged. Payments are not required while you are in school, but it is good to stay informed about your loan balance, interest accrual, and more. After you graduate or fall below half-time, your grace period of 6 months begins. Review available resources to help you get ready for repayment. Now that you are paying back your student loans, be informed about your payment options, interest reduction benefits, and more. Parent PLUS loans are taken out for a student but are the parent's responsibility.

Federal student loan repayment options

Federal Student Aid (FSA) is your federal loan provider. FSA uses servicers (private companies) like Edfinancial Services to manage billing, questions, and payments, and to help you enroll in the best repayment plan for you.

There are four types of federal student loan repayment plans: the standard repayment plan, income-driven repayment (IDR) plans, graduated repayment, and extended repayment. The standard repayment plan is the best option if you can afford it, as you will pay less in interest and pay off your loans faster than with other federal repayment plans. On this plan, you make equal monthly payments for 10 years.

Income-driven repayment plans are a better option if your income is too low to afford the standard repayment plan. IDR plans set monthly payments at between 10% and 20% of your discretionary income and extend the loan term to 20 or 25 years, depending on the type of debt. There are four types of IDR plans: income-based repayment, income-contingent repayment, Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE). At the end of the term, you get IDR student loan forgiveness on your remaining debt, but you may have to pay taxes on the forgiven amount.

Graduated repayment plans lower your monthly payments and then increase the amount you pay every two years for a total loan period of 10 years. Extended repayment starts with low payments that increase every two years for a total loan period of 25 years.

It is important to note that loan consolidation can provide benefits like lower monthly payments and access to additional loan forgiveness programs, but it may also result in the loss of certain benefits and an increase in the total amount paid over the life of the loan.

Frequently asked questions