Consumer complaint received 2025-11-02 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services
State: FL

Complaint narrative:
To the Consumer Financial Protection Bureau, I am filing this formal complaint against my federal loan servicer, EdFinancial Services, for a pattern of misconduct, mishandling of my account, failure to follow federal discharge orders, retaliation, and violation of my rights under the Master Promissory Note and federal law. 
Since XX/XX/XXXX, I have been disputing the amounts EdFinancial claims I owe on my federal student loans. On XX/XX/XXXX, the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX approved a {$110000.00} discharge for my federal loans. Despite this, EdFinancial continued to send me statements for varying amounts, incorrectly insisted I owed money, and failed to properly update my loan status. Both my university and EdFinancial ignored or contradicted the federal discharge order. 
On XX/XX/XXXX, the XXXX  XXXX XXXX sent me a notice saying I had withdrawn, which was not true, and that I owed {$2100.00}. Even though it was confirmed by the Associate Director for XXXX XXXX XXXX XXXX that I owed nothing due to the discharge, the university collected {$2100.00} from me in XX/XX/XXXX, promising reimbursement from the XXXX XXXX XXXX 
This matter is included here for context, but my primary complaint is with EdFinancials actions. 
On XX/XX/XXXX, XXXX told me they would not recognize the XXXX XXXX XXXX  XXXX information and would ignore my in-school status, seeking to charge me {$5400.00} on XX/XX/XXXX. After I notified them again that my loans were discharged, they paused repayment but left an incorrect balance on my account. I reported this issue to the Department of Education Ombudsmans office on XX/XX/XXXX. 
EdFinancial responded by intercepting my communications, stalling investigations, and sending me incomplete or irrelevant responses. On XX/XX/XXXX, I requested my case be handled directly by the Department of Education Ombudsman, as I did not trust EdFinancial to investigate itself. On XX/XX/XXXX, EdFinancial altered my account in a way I consider retaliatory and sabotaging my ongoing complaint. I submitted another case to the Ombudsman that day, but EdFinancial closed it almost immediately and only reopened it a week later. 
EdFinancials retaliation continued : they ignored my in-school exemption and six-month grace period, sending me a new bill on XX/XX/XXXX, for {$110.00} due XX/XX/XXXX. At the same time, my university again erroneously reported that I withdrew on XX/XX/XXXX, when I had actually requested time off due to health and hospitalization issues. This was the second time my university reported a withdrawal that never happened. As of the date of this complaint, I am currently registered for the XXXX XXXX semester at the XXXX XXXX XXXX and remain on track to continue my degree program. 
Since XX/XX/XXXX, EdFinancial has repeatedly breached the Master Promissory Note and failed to follow Department of Education guidance. I should be under an in-school exemption, yet EdFinancial repeatedly tried to collect disputed balances, retaliated after I complained, and disregarded federal law and my borrower rights. My refund remains short by {$1200.00} with no explanation. EdFinancials handling of my account has been consistently incorrect and extremely harmful. 
I am requesting the CFPBs intervention for the following : XXXX correction of my EdFinancial account to reflect the XX/XX/XXXX discharge, proper in-school status, and grace periods. 
Refund of all improperly collected or withheld amounts, including the {$1200.00} still missing. 
A full explanation and accounting of all charges and transactions since my loans were discharged.

Written assurance that EdFinancial will cease further improper collections, retaliation, and mishandling of my account.

Disciplinary action or investigation into EdFinancials pattern of retaliation and noncompliance. 
Permanent dismissal and discharge of all future federal loans needed to complete my current degree at the XXXX XXXX XXXX, as a remedy for the ongoing harm, breach, and retaliation. 
I am the first in my family to attend college, graduated XXXX XXXX XXXX, and am on track to graduate XXXX XXXX XXXX with my XXXX XXXX in XX/XX/XXXX. My academic and professional success has been threatened by the continued failure and misconduct of my loan servicer. As of this filing, I am currently registered for Spring XXXX and remain fully committed to completing my degree. I expect my record, my efforts, and my rights as a federal loan borrower to be fully protected. 
Thank you for reviewing my complaint. Please see my attached timeline and summary for reference. 
Best, XXXX XXXX XXXX XX/XX/XXXX : My loans were fully discharged by the XXXX XXXX XXXX ; FSA and NSLDS showed zero balance. 
XX/XX/XXXX : XXXX XXXX XXXX XXXX sent a false withdrawal notice and billed me {$2100.00}, then collected the funds in XXXX despite no withdrawal. 
July 514, 2025 : EdFinancial attempted to collect {$5400.00}, ignored my in-school status, and sent a bill for {$58.00}. 
XX/XX/XXXX : My in-school deferment was processed, but records remained inconsistent. 
XX/XX/XXXX : I received a partial refund of {$9600.00}, but {$1200.00} was never explained or returned. 
XX/XX/XXXX : EdFinancial sent me a letter showing a negative balance ; records remained contradictory. 
XX/XX/XXXX : I filed an Ombudsman case ( # XXXX ) for improper collections, refund shortfall, and mishandling. 
XX/XX/XXXX : I followed up, demanding a full review and noting UFs and EdFinancials failures, and two wrongful withdrawal reports by UF. 
XX/XX/XXXX : My case was escalated to the FSA Dispute Resolution Team. 
XX/XX/XXXX : While my complaint was under review, EdFinancial reinstated a {$5400.00} balance without notifying me ; this was retaliatory.

XXXX XXXX XXXX : EdFinancial closed and reopened my case, delaying the Ombudsmans investigation. 
XX/XX/XXXX : EdFinancial sent another improper bill for {$110.00} due XX/XX/XXXX. 
Ongoing : UF twice reported my withdrawal in error. I have not been able to correct the records yet due to illness, but I am currently registered for the XXXX XXXX semester and intend to continue my program. 
XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX ; EdFinancial and my university ignored the order, collected money, and billed me again. 
Refund short by {$1200.00} with no explanation. 
EdFinancial intercepted, stalled, and retaliated during Ombudsman review, reinstated improper balances, and sent more bills. 
My university reported ( incorrectly, twice ) that I withdrew, worsening my situation. 
I am currently registered for XXXX  XXXX and fully intend to complete my degree, despite the persistent breach, retaliation, and harm. 
I demand immediate correction, full refunds, disciplinary action, and permanent loan dismissal for my current degree program due to persistent breach, retaliation, and harm.

Company response to consumer: Closed with explanation