# EdFinancial Services

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{{Short description|Student loan financial company}}
{{More citations needed|date=April 2023}}
'''EdFinancial Services''' is a financial company which provides [student loans](/source/Student_loans_in_the_United_States) servicing for 15 of the top 100 lenders in the [USA](/source/United_States), including regional and national banks, [secondary market](/source/secondary_market)s, state agencies and other [student loan](/source/student_loan) providers. It is headquartered in [Knoxville, Tennessee](/source/Knoxville%2C_Tennessee).

==History==
In 1988, CEO William A. Hollin (known as Tony Hollin) launched Educational Funding of the South, going by the name Edsouth, the precursor to EdFinancial Services, in Knoxville. With the backing of local underwriters, Hollin spent six years steadily building the company, going bank to bank buying student loans.{{Citation needed|date=June 2019}}

In 2004, Edsouth provided student loans mostly in the southeastern US, and had an income of over $150 million.

Instead of marketing predominantly to students like some of its competitors, it used a [business-to-business](/source/business-to-business) strategy and communicated directly with [financial aid](/source/Student_financial_aid_(United_States)) administrators. The strategy worked, with a 70% annual growth rate over a five-year period, and an increase from $3 million to $35 million in annual revenue.

In 2002, the company launched eCampusTours.com, which purportedly claims to "allow students to search online for colleges"{{Ambiguous|date=May 2012}}. The website featured 360° by 360°{{Ambiguous|date=July 2011}} virtual college tours of more than 11,000 college campuses{{Ambiguous|date=May 2012}}, allowing students to see campus life through [IPIX](/source/IPIX) virtual tours.{{Ambiguous|date=May 2012}}

In 2012, Edfinancial was awarded a contract by the [US Dept. of Education](/source/US_Dept._of_Education) to service student loans made under the [Federal Direct Student Loan Program](/source/Federal_Direct_Student_Loan_Program).<ref>{{cite web |title=Federal Student Aid - List of Loan Servicers |url=https://studentaid.gov/manage-loans/repayment/servicers#your-servicer |website=studentaid.gov |publisher=US Federal Government |access-date=27 April 2023}}</ref>

== Fines for Fraud and Failure to Meet Contractual Obligations ==
In 2022, [The Consumer Financial Protection Bureau](/source/Consumer_Financial_Protection_Bureau) sanctioned Edfinancial Services for making deceptive statements to student loan borrowers and misrepresenting their forgiveness and repayment options to them. The Bureau ordered Edfinancial Services to contact all affected borrowers, provide them with accurate information, and pay a $1 million civil money penalty.<ref>{{Cite web |date=2022-03-30 |title=CFPB Sanctions Edfinancial for Lying about Student Loan Cancellation |url=https://www.consumerfinance.gov/about-us/newsroom/cfpb-sanctions-edfinancial-for-lying-about-student-loan-cancellation/ |access-date=2024-02-15 |website=Consumer Financial Protection Bureau |language=en}}</ref>

In 2024, the [U.S. Department of Education](/source/United_States_Department_of_Education) announced it was withholding $161,000 in payments from EdFinancial. The Department found that three [student loan servicers](/source/Student_loan), [Aidvantage](/source/Maximus_Inc.), EdFinancial, and [Nelnet](/source/Nelnet) all failed to meet contractual obligations to send timely billing statements to a combined total of 758,000 borrowers.<ref>{{Cite web |title=Biden-Harris Administration Takes Additional Action to Hold Student Loan Servicers Accountable for Failing to Meet Contractual Obligations {{!}} U.S. Department of Education |url=https://www.ed.gov/news/press-releases/biden-harris-administration-takes-additional-action-hold-student-loan-servicers-accountable-failing-meet-contractual-obligations |access-date=2024-02-15 |website=www.ed.gov}}</ref>

==References==
{{reflist}}

==External links==
*[http://www.edfinancial.com Edfinancial Services]

Category:Companies based in Knoxville, Tennessee
Category:Education companies of the United States
Category:Education finance in the United States

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Adapted from the Wikipedia article [EdFinancial Services](https://en.wikipedia.org/wiki/EdFinancial_Services) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/EdFinancial_Services?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.