What Is EdFinancial Services and How Does It Work?

EdFinancial is a federal student loan servicer that works with the US Department of Education to manage and process federal student loans. EdFinancial has been in the student loan industry for more than 30 years.

Headquartered in Knoxville, Tennessee, EdFinancial is one of eight student loan servicers who partner with the federal government. The other servicers include Aidvantage (formerly Aidvantage (formerly) Navient), FedLoan Servicing, Great LakesMOHELA, Nelnet, ECSI and OSLA.

What Is EdFinancial Services and How Does it Work?

Who handles student loans once repayment begins can be confusing because the company that services your student loan didn’t give you the loan. You might even have multiple companies assigned to service your student loans if you have more than one loan.

But the federal government is the lender behind all federal student loans, regardless of where you make payments. Because of the time and expense, the government outsources the administration of those loans to eight student loan servicers — one of which is EdFinancial.

Student loan servicers like EdFinancial are responsible for:

  • Collecting bills
  • Sending correspondence about student loans
  • Managing repayment plans
  • Helping you identify and sign up for forgiveness programs
  • Postponing student loan payments when needed

Like other servicers, EdFinancial has also seen its share of controversy. In March 2022, the Consumer Financial Protection Bureau sanctioned and fined EdFinancial for lying to borrowers and misrepresenting loan forgiveness and repayment options.

The bureau ordered EdFinancial to contact all affected borrowers, provide accurate information about their accounts and pay a $1 million civil penalty.

What Features Does EdFinancial Services Offer?

Some of the features EdFinancial offers its customers include:

Interest Rate Discounts

If you sign up for KwikPay — EdFinancial’s auto debit option — while your account is in active repayment, you receive an interest rate…



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