Consumer complaint received 2022-11-12
Company: EdFinancial Services
State: VA
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

Complaint:
I have parent plus student loans through Edfiancial. I was hurt at work on XX/XX/XXXX and haven't worked since. I'm XXXX now. In XX/XX/XXXX I applied for a XXXX discharge of my student loans. While I was waiting on that to go through I saw that the payments I made to Edfiancial from XX/XX/XXXX till now could be refunded back to me. I made {$7600.00} in payments during that time period. I called Edfiancial on XX/XX/XXXX to get the payments reimbursed back to be. Edfiancial tried to say US Department Of Education was responsible for refunding payments. I called US Department of Education the same day and they informed me that Edfiancial is definitely responsible for repayment. I called Edfiancial back and they agreed and put me in for the repayment of {$7600.00}. 
Called Edfiancial on XXXX to find out the status of refund. Was told it was up to the US Department of Education 's timeline when i would get reimbursedthe payments. Called US Department of Education that same day and was told Edfiancial was wrong and it was up to Edfiancial when they refunded my payments since I made the payments to them. 

I was approved for the XXXX discharge on XX/XX/XXXX. My student loans were transferred to XXXX. I never made a payment to XXXX. All my payments were made to Edfiancial. 

Called Edfiancial on XXXX and was again told my request for reimbursement had been processed but was waiting on XXXX Department of Education 's timeline before they would put the money in my account. 

Emailed Edfiancial on XXXX and was told again it was on the US Department of Education 's timeline.

Emailed Edfiancial on XXXX and was emailed back on XXXX and told it was up to XXXX to refund the payments. 

Called Nelnet on XXXX and was told every payment made after XXXX was under the XXXX discharge but Edfiancial was responsible for refunding the payments. And all payments made from XXXX to XXXX were under the student loan forgiveness and Edfiancial was responsible for refunding those payments too. All the payments I made, totaling {$7600.00}, were made between XX/XX/XXXX and XX/XX/XXXX. 

Called Edfiancial again on XXXX and was told XXXX was responsible for repayment. Told them what XXXX said and the associate I talked to talked to her boss and told me her boss said XXXX was responsible. I told her according to the US Department of Education and XXXX that the payments were made to Edfiancial they were responsible. I asked to speak to a supervisor and was told a supervisor would call me back in XXXX to XXXX hours. 

Edfiancial supervisor called me back XXXX around XXXX. He told me Edfiancial isn't responsible for the refund. That they were responsible up until the loan was transferred to XXXX on XXXX but weren't anymore. I told him it did make any sense since all {$7600.00} in payments from XXXX till XXXX were paid to them. Edfiancial said they aren't responsible. 

Called XXXX back XXXX around XXXX. Explained what Edfiancial told me. She told me since I paid Edfiancial that Edfiancial was responsible. I agreed but asked what to do. She gave me the Federal Student Loan Debt Relief number of XXXX. 

Called Federal Student Loan Debt Relief around XXXX. Agent didn't know anything about what to do. Tried to transfer me to someone else. Phone hung up. Called back. Phone hung up again. Called back. Hung up again. Called back. Transferred to XXXX loan discharge department. The loan discharge department representative talked to her supervisor and assured me that since all the payments were made to Edfiancial that, by law, Edfiancial was legally responsible to refund the {$7600.00}. They gave me the number XXXX ( XXXX ) XXXX for The Consumer Financial Protection Bureau. Tried to call today XXXX but you are closed for XXXX XXXX. So I emailed you and plan to call on Monday. Please advise me what I should do to get Edfiancial to pay back my payments that by law they are required to do.

Company response to consumer: Closed with explanation