As the name suggests, EdFinancial is a financial company that provides student loan services for 15 of the top 100 lenders in the United States. This list also includes regional and national banks, secondary markets, state agencies, and other student loan providers. Its headquarters are in Knoxville, Tennessee.
It was in the year 1988 that William A. Hollin launched Educational Funding of the South. The name that was common at that time was Edsouth, which was the precursor to EdFinancial Services in Knoxville. So with the backing of local underwriters, Hollin spent six years steadily creating the company and going from bank to bank to buy student loans. So in todayโs article, we shall discuss some of the unknown aspects of EdFinancial Services. Stay tuned to us to learn all the details about this company. Letโs take a glance!
Some Details Regarding The Origination Of EdFinancial Services
As we said earlier, it was in the year 1988 that Mr. William A. Hollin launched the precursor of EdFinancial Services which was popular by the name of Edsouth. Well, at that time, Hollin spent six years steadily building the company with the help of local underwriters. It was in 2004 that Edsouth started providing student loans. They were able to do so because they had an income of over $150 million.
So they started using a business-to-business strategy instead of marketing predominantly. Well, they communicated directly with financial aid administrators. This strategy actually worked as it spiked more than 70% of the growth rate over five years. The increase in annual revenue was from $3 million to a massive $35 million, which was huge.
However, in the year 2002, the company launched eCampusTours.com which claimed that it would allow students to search online for search for colleges. The students could get to see more than 11,000 college campuses through which they could see campus life through IPIX and get the experience of virtual tours. Later in 2012, EdFinancial got a contract from the U.S. Dept of Education to service student loans. This was indeed a big help for the students who wanted to pursue higher studies.
Is EdFinancial Services Legit & Safe?
Many of you might have this question in your mind whether EdFinancial Services is a legitimate registered company or not. Let us share all the details in this section. Well, it is a legitimate company that was registered in the Nationwide Multistate Licensing System. It is a network that tracks state licenses for lenders and loan providers.
Well, it was in April 2023 that the U.S. Department of Educationโs Office of Federal Student Aid announced a loan servicing overhaul. It focussed on streamlining and improving customer service. Moreover, it is also one of five loan services that won new loan service contracts. This was a part of the loan servicing improvement initiative that will come up in 2024.
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Does EdFinancial Services Act As A Student Loan Lender?
This company as you can guess, is a third party that manages repayment logistics for federal student loans. So they donโt originate loans or lend money all by themselves. They manage the following tasks:
- They accept loan payments
- Also, they update repayment plans and process applications for deferment of loans.
- They also answer questions about your loan balance and payments.
- At the same time, they deliver tax forms for the student loan interest payment tax deduction.
How Can You Figure Out If EdFinancial Is Your Servicer?
One of the easiest ways to find out if EdFinancial Servicers can be your loan provider or not, log in to your StudentAid.gov account and check under the โMy Loan Servicersโ section. At the same time, you can call the Federal Student Aid Information Center at 1-800-433-3243 and clarify all of your doubts and queries.
As you might know, the loan servicer that you probably have today might not remain the same for your entire repayment. They can change as well. So when this happens, you will get a notification by email or letter that your loans are being processed. Usually, you donโt have a choice but on only one occasion where you can get a choice is when you consolidate loans with a direct consolidation loan.
Ending Note
So, as we conclude, we can say that EdFinancial Services is one of the most popular student loan servicers. If you are living in the United States, you can avail yourself of their services. Here we have discussed some of the unknown aspects of this third-party loan provider. Read through the article to find out all the details.
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