Consumer complaint received 2024-12-28 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: EdFinancial Services
State: MI

Complaint narrative:
This is in addition to earlier complaint filed XX/XX/XXXX ID # XXXX I spent an hour and 14 minutes on the phone again today to try and resolve this issue of my loan balance going from {$200000.00} in XX/XX/XXXX to {$230000.00} in XX/XX/XXXX, a difference of {$26000.00}. 

After spending nearly an hour on the phone ( mostly on hold ) with a low-level case worker with no tangible progress, explanation, or resolution for this sudden massive increase in my loan balance, I requested speaking to a manager.

The manager told me that the interpretation of a letter sent to me in XX/XX/XXXX by an Ed Financial representative roughly two weeks prior was inaccurate. They stated that this letter was to inform me that interest would not be capitalized this year. The manager told me this was inaccurate and that the interest was from a time- outside the pause on federal student loans when my account was in forbearance at the borrowers request. This is false. 

As indicated in my first complaint of this organization in early XXXX ( marked resolved ) I received a letter sometime prior to XX/XX/XXXX stating my student loans would be starting up again in XX/XX/XXXX and that I should prepare and consider a repayment plan. I again requested an IDR plan. I received no indication that this was moving forward and received a notice from them that my payment in XXXX would be upwards of {$2500.00}. I called Ed Financial and spoke to a woman, briefly, who told me no, ignore that. The amount youll owe will be more like {$120.00} and based on your IDR plan. ( I cant recall specifically what the amount she stated was, but was roughly that amount, greatly less than the {$2500.00} their letter stated would be the payment amount. I had no reason to assume this person was incorrect. 

In XXXX- without warning - I had {$2500.00} deducted from my bank account by Ed Financial. What the heck?! My bank declined this transaction, which thankfully didnt leave me completely broke. I waited to hear from them, thinking they will certainly notice the transaction didnt go through and get ahold of me. I heard from no one. I believe I called and spoke to someone who was utterly incompetent and stated openly she could not help me and that I should re-apply for a payment plan. This time, I applied for the SAVE plan. She had no explanation why I was being sent these outrageous bills. A month later I got a bill for around {$7500.00}. I think this was XXXX. At this point I called again. Furious and deeply concerned. I spoke at length with a gentleman who figured out where the glitch was and pushed my SAVE request through. When I asked him about the delinquent {$7500.00} ( that I should never have been charged ) he said oh dont worry about that, were going to put your plan into forbearance to XXXX it out while your SAVE plan is being processed. He was a nice guy and the only helpful person Ive talked to there where an actual resolution was found during the phone call. 

Fast forward to today and the explanation I got for the interest charges. The manager stated that this was interest from the beginning of the year when I requested forbearance. NO! That is FALSE. The man I worked with on the phone said forbearance was their solution to XXXX out the current amount due while my payment plan was being processed. A process I had begun in latter XXXX. A process I was told was ongoing, but would be reflected in my XXXX amount due and not to worry about the {$2500.00}. I never requested forbearance. My account was put into forbearance by their agent to solve the problem THEY CREATED. As we know, later in the year the SAVE program was being litigated and payments put on hold again by the government. A time during which no interest was to be charged. 

So now they are telling me that I accrued $ XXXX because of a request for forbearance. I cant help but feel this company is seeking any way it can to extort money from borrowers. Im currently trying to get a mortgage. This has delayed that process. They still have no date or plan for solving this problem. This must be remedied immediately. I honestly feel they should be investigated. Not once have things gone smoothly there. Frequently things happen Ive been told explicitly WOULDNT happen. And I feel powerless to do anything about it. Please investigate Ed Financial.

Company response to consumer: Closed with explanation