Consumer complaint received 2024-07-15
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: EdFinancial Services (MN)

My name is XXXX XXXX XXXX XXXX XXXX and I entered into the graduated extended repayment plan for 25 years upon graduation in XXXX of XXXX from the University XXXX XXXX. I have made my loan payments without issue since that repayment began in XXXX of XXXX. I am reaching out concerning errors with the recent transfer of my student loans from FedLoans to EdFinancial that is resulting in tens of XXXX  of dollars in overpayments. EdFinancial has erroneously changed my student loans existing terms, conditions, and interest rates and types in the following ways : By increasing the interest rates and incorrectly changing the interest rate types resulting in over {$35000.00} in additional interest across the remaining term of the loan By exceeding my maximum payment amount of {$980.00} for 88 future payments resulting in more than {$45000.00} in overpayments By increasing my monthly payment by more than the maximum allowable amount every 2 years as defined by the Graduated Repayment Plan terms, adding nearly {$65000.00} in overpayments By adding three months worth of payments onto the term of my loan, adding another nearly {$6000.00} in overpayments Allowing interest to accrue despite my never missing a payment, creating negative amortization, resulting in nearly {$3000.00} in additional interest I have reached out to XXXX many times over the past eight months in an attempt to address the aforementioned issues via phone, email and U.S. Department of Educations Submit a Complaint link. However, EdFinancial has yet to provide any evidence of my specific loan terms and conditions to support any of the aforementioned changes, nor have they provided a resolution to my concerns. 
MY ASKS # 1 : I AM REQUESTING MY ORIGINAL NOTES FOR ALL 15 OF MY STUDENT LOANS WITH EVIDENCE OF MY SPECIFIC LOAN INTEREST RATES AND TYPES FOR EACH LOAN The burden of proof is on EdFinancial, the loan servicer, to produce these contracts which they have failed to do so to date despite multiple requests from myself across the past 8 months for this information.

If EdFinancial is unable to provide evidence of my loans interest rates and types, then they legally can not be collecting interest on my loans ( New Jersey XXXX XXXX XXXX Assistance XXXX XXXX XXXX XXXX, XXXX XXXX and XXXX XXXX, XXXX ) If EdFinancial is in fact able to produce documents detailing my specific loans interest rates and types, I ask that my account be corrected to reflect this information. 
In either event, these corrections should then be back-dated to XXXX of XXXX when interest began accruing on my loans again after the XXXX pause and my payments should be re-allocated accordingly to pay down the principle. 
See Detailed Concerns Section # 1 for more information ( pg. 3 ) # 2 : I AM SEEKING WRITTEN DOCUMENTATION OF MY STUDENT LOAN EXACT REPAYMENT TERMS AND CONDITIONS FOR THE GRADUATED EXTENDED REPAYMENT PLAN, INCLUDING ANSWERS SPECIFICALLY REGARDING : My exact maximum payment amount 1. I calculate my maximum payment to be {$980.00} as it can not be more than 3 times my lowest payment OR 150 % of the monthly payment under the standard repayment plan ( XXXX XXXX studentaid.gov, see attachments # XXXX, XXXX, XXXX, XXXX, XXXX ). However, EdFinancial has XXXX payments under the most recent repayment schedule exceeding {$1000.00} ( attachments # XXXX, page XXXX ). See Detailed Concerns Section # XXXX for more information ( pp. XXXX ). 
XXXX. The maximum allowable increase in my monthly payments every 24 months Based on information available to me, the maximum allowable increase is based on a graduation factor of 9.2 % for 25-year plan ( see attachments # XXXX ). However, EdFinancial is increasing my monthly payment at an amount far larger than the graduation factor of 9.2 % ( see attachment # XXXX, page XXXX ) and even claims they can increase my monthly payment by 30 % every 24 months per their response to XXXX Case # XXXX without a shred of evidence to support this claim See Detailed Concerns Section # XXXX for more information ( pg. XXXX ) XXXX. My maximum number of total payments across the duration of the loan To my knowledge, the number of total payments should not exceed XXXX ( 25 years ), with my very last loan payment being on XXXX/XXXX/XXXX Even EdFinancial agrees that I should only be paying XXXX total payments based on their response to XXXX Case # XXXX, however their current repayment schedule has XXXX extra payments included ( see attached # XXXX, page XXXX ) See Detailed Concerns Section # XXXX for more information ( pp. XXXX ) XXXX. Whether or not interest can accrue on my loan repayment type According to many resources, graduated repayment loan payments are always at least the new interest that accrues, therefore a graduated repayment plan will never be negatively amortized ( finaid, org, studentaid.gov, see attachments # XXXX, XXXX, XXXX, XXXX, XXXX ) However, my account is incorrectly currently negatively amortized despite never missing a payment. Currently showing ~ {$3000.00} in accrued interest ( see attachments # XXXX, XXXX ) See Detailed Concerns Section # XXXX for more information ( pg. XXXX ) # XXXX : ONCE MY STUDENT LOANS HAVE BEEN CORRECTED IN EVERY AFOREMENTIONED AREA AND BACK-DATED TO XX/XX/XXXX, I WOULD LIKE TO RECEIVE UPDATED LOAN DETAILS, LOAN BALANCES, AND REPAYMENT SCHEDULE. 
Based SOLELY on my graduated extended repayment plan of a maximum payment of {$980.00}, graduation factor of 9.2 %, and XXXX total payments, I have attached a repayment schedule compliant with these terms and conditions ( pg. XXXX attached ).