Consumer complaint received 2025-02-27 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: EdFinancial Services
State: CA

Complaint narrative:
I am in the XXXX payment plan. Back on XX/XX/XXXX, I requested to be enrolled in the XXXX plan. I am eligible. I was told I am eligible. The servicer has emailed me to tell me that they will not process my application for the XXXX payment plan. The reason they gave is : We can not process your application to be placed into the XXXX payment plan because you already meet the number of payments needed for forgiveness. When I try to talk to someone about this, they keep bringing up the XXXX injunction. However, that is unrelated to what I am asking for. I am not asking for forgiveness. I am not asking for anything other than moving out of XXXX and into the XXXX plan. When I ask them why they told me that can not process my application for XXXX plan, they have no answer. They just keep giving me boilerplate information about delays and XXXX  injunction, etc. If there was just a delay, I would not be filing this complaint. I was told that they will NOT process my application even though I am approved for XXXX. That is the sole reason for this complaint. I want to know what LEGAL authority there is for denying a borrower from moving from XXXX payment plan to another. The number of time spend in repayment is not at all related to any eligibility requirements for any of the payment plans. So the reason the company provided that I have TOO MANY payments towards XXXX forgiveness is not a valid reason to block me from moving out of the XXXX plan into another XXXX plan. 

Here is the exact wording of the email ED Financial sent me on XX/XX/XXXX : Dear XXXXX, Thank you for taking time to submit your concern regarding your student loan account via the Federal Student Aid ( XXXX  ) Feedback Center ( Case # XXXX ). During our review, we recognized we did not provide a response in a timely manner and apologize for the delay. Your concerns, as we understand it, regard processing your XXXX XXXX ( XXXX ) application and loan forgiveness. 

Below is a detailed listing of your XXXX XXXX XXXX loan for reference. 

[ *Removed for Privacy ] *This is your fixed interest rate while in forbearance in accordance with the court injunction related to the XXXX plan. 
**Does not include outstanding interest that has not been capitalized ( added ) to your principal balance. 
XXXX is your monthly installment amount under the XXXX plan. 

The XXXX XXXX XXXX loan we service was issued under Part D, Title XXXX of the Higher Education Act of XXXX ( HEA ), as amended, XXXX XXXX. XXXX et seq. The making and servicing of this loan is governed by the XXXX and the rules and regulations promulgated thereunder. 

Due to a court injunction related to the XXXX plan, borrowers who are currently in XXXX or have applied for an Income-Driven Repayment ( XXXX ) plan but whose applications have not been processed are being put into a forbearance until we can process their application and correctly calculate their monthly payment amount. The forbearance applied to your account will depend on a number of factors, so we encourage you to visit www.ed.gov/save or www.studentaid.gov/saveaction for the latest information. 

We are in receipt of your application that was submitted on XX/XX/XXXX for the XXXX XXXX ( XXXX ) plan. We are unable to process this application due to your loans meeting the required number of payments to qualify for loan forgiveness. 

According to the XXXX XXXX XXXX XXXX XXXX ( XXXX ), Loan XXXX and Loan XXXX have the following payment counts towards XXXX forgiveness : Edfinancial System Loan Number Status Loan Type Repayment Plan XXXX count out of XXXX XXXX  count out of XXXX ICR count out of XXXX XXXX count out of XXXX XXXX Forbearance DLCS XXXX  XXXX XXXX XXXX XXXX XXXX Forbearance DLCS XXXX  XXXX XXXX XXXX XXXX Due to the court 's injunction on the XXXX plan and XXXX forgiveness, we are unable to process discharges on direct loans. Once The Department of Education ( XXXX ) receives further guidance and a determination is made of when services can process eligible discharges, we will then be able to provide an update to your account and/or process any discharges or refunds, if eligible. 

If you have any questions or concerns, please visit edfinancial.studentaid.gov/contact, or you XXXX speak with a Customer Service Representative XXXX XXXX. 

Sincerely, XXXX XXXX XXXX Edfinancial Services thread : XXXX : : -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The relevant portion from the email is this : " We are in receipt of your application that was submitted on XX/XX/XXXX for the Income-Based Repayment ( XXXX  ) plan. We are unable to process this application due to your loans meeting the required number of payments to qualify for loan forgiveness. '' I want them to address this directly. What does my payment count have to do with which payment plan I am allowed to be in? So either they need to correct the record and tell me that this was wrong when they sent it and tell me that they will INDEED process my application or tell me WHO and WHY made this decision to NOT process my XXXX application due to how many payments I have.

Company response to consumer: Closed with explanation