Consumer complaint received 2023-11-05
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services (MN)

On XX/XX/2023, I sent a payment of {$15000.00} to Ed Financial towards my principal balance. I had previously applied for a consolidation. However, per the Student Aid page, my consolidation application was still pending and unresolved. To date, the consolidation still shows as unresolved. I was notified that some steps were missing. So, I sent the payment before XX/XX/2023. This was to save on interest. 

Upon receiving the payment ( same day ), EdFinancial split the transaction into two. {$5000.00} towards the principal, then a {$10000.00} credit and payment ( assuming back to me ). I do not know why that was done. Then, on XX/XX/2023, they consolidated the total loan amount unto another servicer ( XXXX ). When they transferred the loan during consolidation, they transferred {$37000.00}. But they do not explain whatever happened to the remaining {$10000.00}. It was not showing as a credit, and they did not send it back to my bank. They did not forward it to the new services either. I tried calling daily. I spent hours on the phone. I waited for calls. At times, they returned my calls weeks later. I sent emails. They respond months later. 

XX/XX/2023, I called Ed Financial. They said they sent me a check for the {$10000.00} + I need to be refunded. They said it would take up to 60 days to process the XX/XX/2023 payment. So I waited. I am unsure why they did not apply the entire {$15000.00} to the principal. Sixty days have come and gone, and to date, I have not received anything. I got a few emails from them stating that my concerns were " fully resolved. '' Meanwhile, the {$10000.00} are in limbo. They are not paying the principal, which is not earning on my savings either. Who is going to make me whole? Why didn't they apply all {$15000.00} to the loan but only {$5000.00}? I could be saving interest. 

On the last phone call ( after waiting 8 hours online while I was at work ), EdFinancial said it is up to the U.S. Treasury to send the payment. It has been owed to me since XX/XX/2023. How long until I get my money back? How long must I wait for a straight answer from any involved entities? The remaining loan balance is now with a private lender ( XXXX ) that paid off XXXX because I can not afford these mishaps. But I need to pay the {$10000.00} to them to lower my payments and save on interest. I do not have extra money. I want to pay the loan as fast as possible. When going to their website, they put a lot of effort into having me apply for programs. 

Ed Financial takes months to return emails. They take days for a phone call, sometimes off regular hours. They do not call you back if you are busy. You need to call repeatedly, and every call is a new line. I tried emails. They say you should " chat '' with an agent. That never worked. It is always broken, and you can not chat with anyone. When you get a reply, they give you a generic answer. When they call you back, they say it is " resolved, '' and the check is in the mail. It took them less than a day to take the money from my savings when I made the payment. How many months to get it back? 

I got documentation of my communications and the lack of transparency from the websites. I also got the emails where they basically say that it is resolved. Over the phone, they indicated that my money is with the U.S. Treasury, and it is up to them when I will get it. The website does not show where the money went. At least they should put a number for the Treasury or whoever so I can follow the trail.