Consumer complaint received 2025-11-07 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: EdFinancial Services
State: LA

Complaint narrative:
Description of Problem I am filing this complaint against Edfinancial Services ( and/or its predecessor servicers ) regarding the misleading and inadequate disclosure of interest accrual and capitalization on my student loans, which has resulted in an overwhelming debt load of approximately {$60000.00}. 

Key Facts and Timeline : 1. Date Loans Originated : My first loans were taken out on or around XXXX, while I was a XXXX XXXX XXXX that just moved from Texas and was living alone with very little guidance and help from anyone. I was borrowing blindly thinking it was like the pell grants I received and I was given no help or guidance from either school I attended ( XXXX and XXXX ). 

2. Lack of Disclosure : At the time of origination and throughout my schooling and subsequent repayment periods, I was not properly or adequately informed about how interest was accruing, particularly the devastating effect of interest capitalization during periods of deferment or forbearance. The complex financial terms and the true cost of the loan were not disclosed in a clear, conspicuous, and understandable manner to a XXXX XXXX XXXX inexperienced, young and desperate financially inexperienced borrower. 

3. Accrued Interest : I have reviewed my loan history and discovered that a significant portion of my current principal balanceapproximately $ XXXX accrued and capitalized interest. This means I am now paying interest on interest, which has created a debt trap that is impossible to manage. I am now unable to make the monthly payments at {$650.00} a month. This high payment is supposed to pay off the loans in 10 years, but without being able to make that payment I won't be able to do anything else for my life. My only option is to pay a small amount forever. 

4. Servicing Misconduct : The servicer 's communications were confusing, prioritizing short-term options ( like forbearance ) that heavily contributed to this interest growth without clearly explaining the long-term financial consequences. 

Harm Suffered This undisclosed and excessive interest burden has caused severe financial harm. My original principal balance was significantly lower, and the runaway interest accrual has made the debt load financially insurmountable. I am now in a position where : My current total debt of {$61000.00} makes it impossible to achieve major life milestones, specifically I can never afford to buy a house or build generational wealth. 
My monthly payments are disproportionate to my income, and I feel I will be paying this debt for the rest of my life, primarily servicing interest instead of principal. 
The lack of clear disclosure about the true cost of borrowing and the mechanics of interest accrual, particularly as a young, inexperienced borrower, represents a deceptive and unfair lending/servicing practice. 

Desired Resolution ( Loan Discharge and Remedy ) I request that Edfinancial Services and/or the Department of Education take the following actions to resolve this complaint :

Company response to consumer: Closed with explanation