Most of the time the contributors to this blog are writing as legal practitioners and academics, describing trends we see in the law or issues we encounter in our work. This one is a little more personal, so I'm blogging this one as a consumer as well as a Public Citizen lawyer.
Last week, I -- along with many other borrowers, to judge by the internet traffic on this issue -- received notification both from the federal Direct Loan program and from a company called EdFinancial that my student loans under the federal Direct Loan program have been transferred to, and will henceforth be serviced by, EdFinancial.
I have a number of concerns here.
First, at the broadest level, this is yet another troubling extension of the trend toward privatization, with its attendant risks and injection of the profit motive into public services.
Second, and on more of a personal note, I found the whole transfer process rather jarring, since the first thing I have to do on the EdFinancial website to set up my new account is give them my SSN. I think this is actually a legitimate site, but it sure feels like a scam. Which leads me to...
Third, once again on a more general level, I'm sure I'm not the only person to whom this feels like a scam. I fear other borrowers will probably ignore it for that reason and might miss a payment as a result. I note that all correspondence I received from Direct Loans and EdFinancial was via email; I never received a letter or anything on official Department of Education letterhead that might lend a little more credibility here.
According to the blog DL Insider, this privatization is a broader trend and implicates more companies than EdFinancial. See here for their understanding, as of January.
Fellow bloggers, any reactions, or advice?
For one, loan is essential especially to students who really wants to finish school, for me I just want to let those students choose the right one to eliminate those situation of scams, Anyway I hope students can read this and of course learn from it!
Posted by: Cathy Miller | Sunday, October 28, 2012 at 01:35 AM
I think this is actually a legitimate site, but it sure feels like a scam. Which leads me to.
Posted by: dissertation sample introduction | Wednesday, October 24, 2012 at 08:24 AM
This has GOT to be a scam.
I haven't received anything on ink and paper in the mail.
I think this Edfinancial Services are majorly scamming.
And if they are then I'm going to f' them up so hard. Reporting them to their ISP, to the SEC, to the local and national news, the BBB, and I'll find a FORUM of folks ... (ahem* - you guys) to submit a minimum of 50 bad reviews to all the review sites. I may even have to put a flaming bag of feces on the admin of Edfinancial Services' doorstep.
If you have to give them your SSN it's a scam.
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Students want to get the loan instantly and also with less effort. But if there will be increase in interest rate of the student loan it will be the huge problem for the students. And after the privatization of federal student loans it may be possible that that interest rate of loan will be decreased.
Posted by: Meredith College Financial Aid | Tuesday, June 19, 2012 at 06:34 AM
Student loan now a days is quite hard i think it is because of global crisis but now i heard that it is fine now for sure all who want to get a student loan will have it now.
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Posted by: MICA Financial Aid | Friday, June 15, 2012 at 03:24 AM
Loan is the basic need of the students. And also every student wants to get the loan with low interest rate. There are many companies, who offer the loan for the students but it’s up to the student that which company they choose. Students will mostly prefer that company which will give them the loan with low interest rate. So Privatization of federal student loans is very useful information abut to get the loan.
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Posted by: SMU Financial Aid | Wednesday, June 06, 2012 at 02:37 AM
This would give people understanding on how Privatization of federal student loan works. I think that every student must have this kind of privilege to provide them proper equality and how to handle loan as a student.
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