Questions About Manage My Account

Billing and Statements

Will I receive a monthly statement?

Yes. Edfinancial mails monthly statements approximately 20 days before your due date. If you do not want a paper bill, you also have the option to choose electronic billing (“e-correspondence”) or automatic debit (“KwikPay”).

Note that if you are a Direct Loan borrower on automatic debit, you will not receive a monthly paper statement.

If you are in school, grace, deferment, or forbearance, you may not receive a monthly statement although you can still check your account, view your principal and interest balance, and make payments through Manage My Account.

If I did not receive my statement, am I still responsible for making my monthly payment?

If your account is in repayment, you are always responsible for making timely payments, regardless of whether you receive your statement in the mail. If you fail to make your monthly payments, you may incur late fees and negative credit reporting.

If you are having trouble making your payments, consider your repayment options. You may have different repayment plans and deferment or forbearance options available to help you manage your student loan debt.

If I am in school, grace, deferment, or forbearance and I receive a statement, do I need to make a payment?

If your federal student loans are in one of these statuses, you are not required to make payments. You can, however, make payments on your loans at any time to apply towards any outstanding interest and to reduce your principal balance.

Some private loans will require payments while the student is in school. If you have a private loan and are not sure if payments are required while in school, check the terms of the promissory note or contact us.

Will I receive monthly statements if I return to school?

If you return to school and your federal loans are placed in a deferment status, you will no longer receive monthly statements although you can still check your account, view your principal and interest balance, and make optional payments through Manage My Account.

Why do I receive more than one monthly statement?

Generally, if you have multiple loans with the same due date you will receive one monthly billing statement. In rare occasions, two or more loans may have different due dates. If you would like to receive one statement, simply contact us to request combined billing.

I received my monthly bill, but the amount due is zero. What's going on?

If you paid more than the amount due on your student loans, it's possible that you are ‘paid ahead’ on your account. Note that being paid ahead has no effect on how your loans are applied to the principal and interest balance - it simply means you are not required to make a payment.

Payments are always applied first to any outstanding interest and any remaining amount is applied to the principal balance. If you pay more than your minimum monthly payment, any amount received in excess of the outstanding interest is applied to the principal balance. You may also receive a bill for the next month which is less than your normal installment amount. If the amount you paid in excess of the amount due is enough to satisfy the next month's payment, your next month's payment due will be zero.

If you are in paid ahead status with no payment due, you can continue to make payments as you would normally. Interest will continue to accrue on your outstanding balance even though you are paid ahead. If you are paid ahead and on automatic debit, your payments will continue to be drafted each month.

A benefit of being paid ahead is it can give you a financial cushion. Not having to pay your student loan bill one month might be helpful if you have some additional or unexpected expenses that month.

Payments, Interest and Fees

How is student loan interest calculated?

Most student loans (including all federally guaranteed loans) use a method of interest accrual known as ‘simple interest’. The difference between simple interest and compound interest (the type of interest that accrues on most major credit cards) is that simple interest is only calculated on the principal balance, not on the previously accrued interest.

To calculate your daily interest accrual, use the following formula: (Current Principal Balance x Interest Rate) ÷ 365.25 = Daily Interest.

This formula says to multiply your current principal balance by the interest rate and then divide the result by 365.25. The result is your daily interest accrual, or how much interest you would pay for one day. You can multiply this number by a specific number of days to calculate your interest accrual over a certain amount of time.

Example:

  • Current principal balance: $20,000.00
  • Interest rate: 4.50%
  • Days of interest needed: 30

Just plug in the numbers to calculate the approximate 30 day interest accrual: [(20,000 x .045) ÷ 365.25] x 30 = $73.92. You may view your unpaid accrued interest via Manage My Account.

What does it mean when interest is capitalized? When does it occur?

Interest accrues on the principal balance of your loan during times when a payment is not required to be made on a loan such as deferment, forbearance, grace, and in-school statuses. If it is unpaid, accrued interest is usually capitalized (added to the principal balance) when the loan goes into repayment thereby increasing the total outstanding balance due and the amount of interest which accrues daily.

Because interest continues to accrue on the principal balance if a payment is not made, any future interest that accrues after capitalization will be based on the new outstanding principal amount (previous principal balance plus capitalized interest). Therefore, capitalization increases the total cost of your loan.

You can avoid the cost of capitalization by making payments during any period when they are not due. For certain federal student loans, including unsubsidized Stafford, Parent PLUS and GradPLUS, federal law permits unpaid interest to be added (capitalized) to your principal balance at certain times during your loan term. These times where unpaid interest may be capitalized can include after your grace period, at the end of deferment, and at the end of forbearance.

For private loans, consumer law permits unpaid interest to be capitalized at the frequency stated in the terms of the agreement that you signed when you obtained the loan.

I'd like to make a payment only to interest. How can I do that?

If your payments are currently suspended due to deferment or forbearance, it will benefit you to continue making payments on the interest that accrues to avoid capitalization. To determine the amount of unpaid interest, first log into Manage My Account and select ‘Account Details’. The amount of unpaid accrued interest for all loans is listed under “Accrued Interest”. If you have several groups, you can select each group to see group-specific accrued interest.

Any payment you make will be applied first to outstanding interest, unless late fees are assessed. Interest accrues daily; therefore, the amount of unpaid accrued interest changes daily. Any amount paid above interest accrued will be automatically applied to the principal balance.

What fees could potentially be added to my account?

Some lenders charge a late fee if you do not make your payment on time. Usually, these fees are charged as a percentage of your monthly payment. Many lenders provide for a grace period before they charge a late fee. For example, if the lender’s grace period is five days, a late fee would be charged six days after the payment is due, if a payment has not been received.

Can I pay more than my minimum scheduled monthly installment amount each month?

Yes. If you want to pay more than your minimum scheduled monthly installment amount each month, simply enter an 'Additional Amount' when setting up KwikPay (automatic debit) in Manage My Account (MMA). The 'Total Monthly Auto-Debit Amount' will include the 'Additional Amount'. If you are already on KwikPay, you may edit your settings via MMA. Note that the extra amount will be automatically applied proportionately to all loans and cannot be targeted to a specific group.

If you wish to make extra payments without KwikPay, you may do so manually online through Manage My Account (MMA). You can also target payments toward a specific group in MMA. If you wish to be billed for a larger payment, you may contact us to request a reduced repayment term (note that by requesting a reduced term, you will be required to make the disclosed installment amount).

NOTE: If you are on KwikPay and you target an extra payment to one or more group(s), it may pay that group ahead (i.e. you may advance the due date of that group) and affect the application of future payments. If you have multiple groups and are on KwikPay, our servicing system will attempt to keep the due dates of your groups aligned. If a group is paid ahead, future payments will be applied to the other groups rather than to each group’s minimum installment. If you wish that an extra payment not pay ahead your account, please contact us after an extra payment is made to request that we remove the paid ahead status. If you are paying more than twice the amount of a group’s installment, you may select the ‘do not advance due date’ option within Manage My Account to prevent the group from being paid ahead.

Credit Reporting

I only have one account with Edfinancial Services, but there are multiple loans showing on my credit report. Why?

Although you only have one account with us, each loan that you take out has its own “tradeline” (i.e. account or line of credit) that is reported to the nationwide consumer reporting agencies. Depending on the number of years that you were in school, you may see several loans that will each display separately on your credit report. If you consolidate your loans, your previous loans’ tradeline will reflect a $0.00 balance and you will have a new tradeline for the consolidation loan.

I have paid off my loan, but it is still showing on my credit report. Why?

Education loans will typically remain on your credit history for seven years from the last reported date. The status or reason for loans paid in full include: paid in full by the borrower, claim paid, paid due to consolidation, and paid due to transfer. Example: If your loan was paid in full in March 2012, the final report of paid in full will most likely remain on your credit history until February 2019.

Will switching repayment plans or using a deferment or forbearance hurt my credit history?

No. The type of repayment plan you use to repay your student loan is not reported to the credit bureaus. Using a deferment or forbearance for your student loans will not adversely affect your credit history. Making a late payment or not making a payment at all will hurt your credit history. Requesting a deferment or forbearance to clear delinquency on your account retroactively will not always remove negative credit history that has already been reported.

My address changed, and I didn’t receive a bill for several months. I brought the account current when I realized what happened. Can you clear the delinquency that was reported?

No, we are unable to remove anything that was reported accurately on your credit. In this case, you are still responsible for any monthly payments on your student loan even if you do not receive a bill. Sometimes, deferment or forbearance can clear delinquency from credit, but those situations require you to meet specific qualifying criteria. If your address changes, please notify Edfinancial Services as soon as possible to ensure you continue to receive your monthly statements. To notify Edfinancial Services of an address update, log into Manage My Account, use the link to update your information on the contact us page, or contact one of our customer service specialists by phone or email.

I had a deferment/forbearance placed on my loan, and I am still showing as delinquent for the months that it covered. Why?

Deferments and forbearances can allow you to bring your account current without making a payment to do so, but they do not always clear up negative credit reporting that already occurred. Certain eligible deferment periods, such as an in-school deferment, will clear any previous negative reporting if the qualifying deferment period occurred at the same time as the negative reporting period. Forbearances, even if applied retroactively, rarely clear prior negative reporting.

My spouse and I are divorced, and I am no longer required to make payments toward our Spousal Consolidation Loan. Will this loan affect my credit if my former spouse doesn’t make his/her payments?

Both parties are liable for the loan even if the court declares one party to be solely liable. If your former spouse doesn’t make payments, the delinquency will be reported on your credit history as well as your former spouse’s credit history. Also, any person who is an endorser on a loan is liable and could have negative reporting due to delinquency on an account.

What if certain information really does not belong on my credit report?

If you have researched and discovered that student loan information truly does not belong on your credit report, you can contact the three credit bureaus either online or by calling their toll-free numbers to dispute the information. The process can take up to two months to be completed, but the incorrect items should be removed from your credit history. Click the name of a credit bureau for more information about credit disputes:

Transunion
Experian
Equifax

My loan defaulted, but I made payment arrangements to get it out of default. Now it is showing up three times on my credit report. Why?

Each loan has a tradeline on your credit report. When a federal student loan defaults, it is transferred to the guarantor or to the U.S. Department of Education for continued collection, which creates a new tradeline. Once the loan is rehabilitated and taken out of default, the loan returns to Edfinancial Services and establishes a third tradeline for current reporting.

I have heard that if I continue to dispute the information on my credit, that the items will eventually be removed. Is this true?

No, this is not true. If the information reported on your credit history is inaccurate, it will be updated with the first dispute that you file. Data furnishers are required to report the account information accurately and in an unbiased manner.

Taxes

How do I find out about my tax information?

You may be able to deduct interest paid on eligible student loans on your federal income taxes. The amount of interest paid on your student loan account is provided to you by the end of January each year. An IRS 1098-E, Student Loan Interest Statement may be mailed to you or the information may be available on your January billing statement or online, depending upon your loan program and the amount interest paid. Your reported tax information can also be accessed through Manage My Account.

If you have any questions about allowable deductions for the interest or origination fees paid on your loan(s), please contact a tax professional or the Internal Revenue Service (IRS) toll free at 1-800-829-1040 or visit www.irs.gov.

What types of tax benefits are available for education-related expenses?

Please see our article Federal Tax Benefits for Education for more information on the Hope Tax Credit, American Opportunity Credit, Lifetime Learning Credit, Student Loan Interest Deduction, and other tax benefits available to parents and students.

e-Correspondence

What is e-correspondence?

E-correspondence allows you to receive electronic communications regarding your account which will reduce the amount of paper correspondence you receive by conventional postal delivery services and save trees at the same time!

How do I sign up for e-correspondence?

In order to sign up for e-correspondence, visit www.Edfinancial.com/BePaperFree for a quick registration process. You will receive an email from Edfinancial Services confirming your registration. If you have never registered for online account access via Manage My Account, you will receive an email instructing you that you must register for online account access in order to participate in e-correspondence. Once you have created your account, your e-correspondence registration will be complete and you may receive electronic communications from Edfinancial Services.

I already have an online account. How is e-correspondence different?

Online account access provides you with useful tools and information such as:

  • loan details including interest rate and repayment terms
  • online payment access
  • calculators and helpful articles about student loans
  • loan balance and payment history
  • information on repayment plans, deferment and forbearance

E-correspondence is an additional process that allows Edfinancial Services to send you communications that may include payment confirmations, information about your repayment options, and required annual privacy policy notices. If you have not already registered for e-billing, you may also do so via the e-correspondence registration (www.Edfinancial.com/BePaperFree).

What are my legal rights concerning e-correspondence?

We are required by law to provide certain information to you in writing; this means you have a right to receive that information on paper. We may provide this information to you electronically after you have reviewed the Disclosure and given consent to receive this information electronically. You may opt out of e-correspondence at any time by contacting us to withdraw your consent.