Consumer complaint received 2026-05-18 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: NY

Complaint narrative:
Between XX/XX/XXXX and XX/XX/XXXX, I made approximately {$17000.00} in authorized ACH payments from my XXXX checking account to my federal Direct Loan account serviced by EdFinancial Services. Of that total, EdFinancial has properly applied only approximately {$11000.00} to my loan balance. Approximately {$3200.00} in authorized payments has not been applied, refunded, or otherwise accounted for a pattern of servicing failure across multiple transactions over a four-month period. Specific transactions where XXXX debited the full authorized amount but EdFinancial applied less than the authorized amount ( XXXX debit date XXXX amount EdFinancial amount applied shortfall ) : - XX/XX/XXXX {$2700.00} debited {$2500.00} applied {$200.00} shortfall - XX/XX/XXXX {$800.00} debited {$500.00} applied {$300.00} shortfall - XX/XX/XXXX {$2800.00} debited {$2500.00} applied {$300.00} shortfall - XX/XX/XXXX {$1000.00} debited {$600.00} applied {$400.00} shortfall - XX/XX/XXXX {$800.00} debited {$300.00} applied {$500.00} shortfall - XX/XX/XXXX {$2000.00} debited {$1500.00} applied {$500.00} shortfall - XX/XX/XXXX {$1500.00} debited {$1000.00} applied {$500.00} shortfall - XX/XX/XXXX {$500.00} debited {$0.00} net applied {$500.00} shortfall ( EdFinancial applied {$100.00} on XX/XX/XXXX, then reversed it the same day ; the remaining {$400.00} was never posted ) - XX/XX/XXXX {$200.00} debited {$100.00} applied {$100.00} shortfall EdFinancial 's own transaction history shows a recurring same-day " Payment Reversal '' pattern : {$100.00} reversed on XX/XX/XXXX, {$1000.00} reversed on XX/XX/XXXX, and {$400.00} reversed on XX/XX/XXXX. In none of these reversals did the funds return to my XXXX account. Each payment was authorized in full, debited from my XXXX account in full, and is documented in both XXXX XXXX XXXX statements and EdFinancial 's online account history. The shortfalls are not explainable by interest allocation, fees, or normal posting timing. I called EdFinancial customer service on XX/XX/XXXX to request a written reconciliation between ACH payments received from my XXXX account and payments applied to my loan account. The representative was unable to locate or account for the missing portions and provided no follow-up correspondence or resolution. I have filed ACH dispute claims with XXXX regarding several of these transactions, including a {$500.00} dispute currently pending ( Claim XXXX ) and two prior XX/XX/XXXX disputes ( {$1300.00} and {$1600.00} ) that XXXX resolved in my favor. However, the underlying servicing failure at EdFinancial has not been corrected, and several of the older transactions fall outside XXXX XXXX 60-day ACH dispute window. I am requesting that EdFinancial Services : ( 1 ) provide a complete written reconciliation of all ACH payments received from my XXXX account against payments applied to my loan during this period ; ( 2 ) properly apply the approximately {$3200.00} in unapplied payments to my loan principal with retroactive effective dates matching the original XXXX debit dates, as required for federal Direct Loans under 34 C.F.R. 685.211 ; and ( 3 ) credit any accrued interest resulting from the misapplied principal during the period of non-application.

Company response to consumer: Closed with explanation