Consumer complaint received 2023-10-02
Company: EdFinancial Services
State: WI
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
I called my loan provider, Ed Financial, on XX/XX/XXXX. I wanted to talk to them about my current plan and if it was still right for me, or if Biden 's SAVE Plan was better for me, or anther one, etc. now that my first post-covid payment is coming due in XXXX.. 

The person on the phone told me my loan was automatically switched to Biden 's SAVE Plan. They told me they could do this without my authorization, which is what happened. Not only did they switch me to this new plan, they reduced my monthly dollar amount to pay going forward, all without my authorization. 

They said there was no interest involved.

I asked why before Covid I was paying {$250.00} a month, but now my payment is only {$64.00} per month. I told them it sounds like an interest payment. 

They assured me {$64.00} was the new payment amount and that 100 % of that payment was going to principal. Further, if I pay that amount for 10 years, any remaining balance is forgiven. I was skeptical and asked if they were sure. I told them flat out I do not want to only pay interest and not move my balance down. They re-assured me it was 100 % principal and that the payment would reduce my balance that amount, that this was mty payment going forward, and after 10 years maximum, any remaining balance is forgiven. 

I asked them to provide me this info in writing and they told me they are not able to provide anything requested in writing. This was obviously a lie. They owe me whatever they say in writing at my request. 

I further told them I have been paying since XXXX and asked if they were sure I needed to pay 10 more years. They told me they were not sure and that I'd need to call the Department of Education for that information. 

I called the Department of Education and was told they have nothing to do with the duration of my loan, that it is all on my provider, Ed Financial. 

I called Ed Financial back and was told this time the {$64.00} is an interest payment and paying that amount monthly will not move my principal balance down at all. 

I was totally lied to on the phone, being first told it all would apply to principal. In fact, it seems none of it does. I was lied to in how they said they could not give me that info in writing. 

I was lied to in how they said I needed to contact the Dept of Education to find out how long I have to pay. 

I was lied to about literally everything they had to say that will have serious ramifications on my loan. 

After my second call they did not offer to resolve anything. They told me a supervisor would call me the next business day and that they would provide a transcript of my original phone call, which would take 41 business days, long after I need to start paying again. 

Fraud, lies, and deceipt at Ed Financial. Further no one offered to make it right, and as of now I am wiating to speak to their supervisor, fugure out what I actually need to pay, figure out why they reduced my loan payment amount to an interest-only payment without my authorization, then lied and said it was principal only, and further lied they could not provide that in writing. I have a mess here, and I am seeking legal council.

Company response to consumer: Closed with explanation