Consumer complaint received 2024-05-15
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services (IL)

I have been trying to pay back my loan since XX/XX/XXXX with all of my payments being reversed. I have proof of enrolling into the auto pay program as well as the proof for making payments along with the confirmation numbers. 

I called today and I was told that there was a phone number that is not my phone number listed on the account as well as I was asked to remove my banking and account number and was asked to enter a new one. They also stated that because I had not paid that my account was entered into the following program. 

I found other post about this institution having complaints and they have been fined in the past. 

https : //www.consumerfinance.govXXXX XXXX XXXX XXXX? XXXX Thank you for contacting Edfinancial Services. At your request, we have provided information regarding the on-ramp transition period. Under legislation enacted by Congress, the student loan payment pause has ended. Interest began accruing on XX/XX/XXXX, and payments resumed in XXXX. To help borrowers successfully return to repayment, the Department of Education created a temporary on-ramp period through XX/XX/XXXX. This prevents the worst consequences of missed, late, or partial payments, including negative credit reporting for delinquent payments for twelve months. However, interest will continue to accrue. 

However, payments are still due, and interest will continue to accrue ( add up ). We will not report you as delinquent during the on-ramp, but we do not control how credit scoring companies factor in missed or delayed payments. 

Only loans that were eligible for the payment pause are eligible for the on-ramp. You do not need to request or enroll in the on-ramp period. Well automatically put your loan in a forbearance for the payments you missed. Heres what this means : Your account will no longer be considered delinquent and will be made current. 
Your recent missed payments will not lead to negative credit reporting. 
Your loans will not default and therefore will not be sent to collection agencies. 
You will still receive your billing statements at least 21 days before your payments are due, and they may show you are delinquent. Not making a payment will result in you owing more on your student loans. As interest builds up, Edfinancial may be required to increase your monthly payment to ensure you pay off your loans on time. If this affects you, we will notify you of the changed monthly payment amount. ( Note : On an Income-Driven Repayment plan, your monthly payment will not go up if your payments do not cover interest ). Additionally, missed payments generally wont count toward loan forgiveness under any income-driven repayment plan or Public Service Loan Forgiveness . 

We recommend you still make your payments if you can. If you cant afford your payment, explore IDR plans, especially the SAVE Plan. For more information about the different IDR plans, visit the Income-Driven Repayment Information Center to determine which plan is right for you. Under the SAVE Plan, your monthly payment could be as low as {$0.00}. 

If you have questions about your account, please visit Edfinancial.Studentaid.Gov/contact or call us at XXXX. Our automated voice response system is available 24 hours a day. 

Sincerely, Customer Care Edfinancial Services