Complaint Against EdFinancial
Complaint Against EdFinancial – Lack of Communication, Mismanagement, and Financial Harm
In August 2016, I believed I was co-signing a student loan for my stepdaughter. I later discovered that I had unknowingly taken out a Parent PLUS loan in my own name.
On September 9, 2016, EdFinancial sent one letter identifying themselves as the loan servicer. After that, I received no communication for nearly a decade.
In October 2025, while checking my credit report, I discovered for the first time that I had a loan for over $83,000. I had never received bills, statements, or repayment notices.
When I contacted EdFinancial, I was told my account had been set to email notifications, which I never authorized. I would not agree to receive sensitive financial communications solely by email due to the risk of fraud and scams. Notably, in correspondence I received beginning November 21, 2025, EdFinancial itself warns borrowers about student aid scams and directs them to report fraud to the Federal Trade Commission. This makes their claim of email-only communication contradictory and concerning.
When I requested copies of the emails they claim to have sent, they stated they cannot provide them.
On November 21, 2025, I received my first piece of mail in nearly a decade, and it referenced a different account number than the one originally assigned in 2016.
Since that time, my spouse and I have made over 30 phone calls and have experienced:
• Conflicting and inconsistent information
• Refusal to transfer calls
• Inaccurate statements from representatives
Additionally, we were:
• Placed into the wrong repayment plan
• Sent bills with incorrect due dates
• Given conflicting payment amounts
• Placed into repeated forbearances that increased interest
We are now facing nearly $200,000 in repayment for a four-year in-state degree. I also received a 1098 showing over $19,000 in interest accrued without my knowledge, which may have tax implications. Additionally, this unexpected financial burden has put my ability to support my son’s future education at risk, as I may no longer qualify for or be able to take on additional loans if needed.
I also learned that I was included in a 2022 data breach affecting approximately 2.5 million borrowers, yet I was never notified.
Harm has been caused by years of non-communication, misinformation, and administrative mismanagement.
A loan servicer is responsible for providing accurate information, maintaining consistent communication, and ensuring borrowers understand their obligations. That is specifically what their role entails, and in this case, that duty was completely disregarded.
This experience reflects a serious breakdown in communication, transparency, and proper loan servicing practices.
Sincerely,
Stephen
Extremely Concerned Parent and Borrower