Frequently Asked Questions: Delinquency

1. Who is EdFund?
2. I am temporarily having difficulty making my payments. What are my options?
3. What is delinquency and what does it mean?
4. Why would I hear from EdFund?
5. I am unemployed and can't make my payments. What can I do?
6. I am in the military and about to be deployed. What are my options?
7. Can I get my loans forgiven or canceled?
8. How do I resolve a dispute about my student loan?
9. How is my student loan reported on my credit report?
10. Can I file bankruptcy to get my loan discharged?
11. What are my options if I was not satisfied with the quality of education provided by the school?
12. I consolidated my loans. Why was one loan not included?

1. Who is EdFund?

EdFund is the guarantee services provider for the California Student Aid Commission (CSAC), a national guarantor within the Federal Family Education Loan Program. EdFund administers FFEL Program activities on CSAC's behalf, including loan origination, default prevention efforts, loan purchase and collection.

2.  I am temporarily having difficulty making my payments. What are my options?

Your first option is to change your current repayment plan in order to temporarily reduce your payment amount. For assistance with these options please call your lender or EdFund's Default Prevention Services at 800.298.9490.

3.  What is delinquency and what does it mean?

If you fall behind on your regular payment you are considered to be delinquent by your lender. During delinquency your account balance will continue to grow as interest and late fees accrue. Your account will remain in delinquency until you pay all past due payments as well as interest and late fees, or you make some other arrangement with your lender. If you fall 60 days or more past due on your payments, EdFund will contact you to help you evaluate options for resolving your past due account.

4. Why would I hear from EdFund?

EdFund provides additional services when the lender notifies us that you've missed payments on your student loans. To ensure you have a successful repayment experience, EdFund will share a variety of repayment options that are available to you. These repayment options may make it easier for you to manage your monthly loan payment.

5. I am unemployed and can't make my payments. What can I do?

Your first option is to apply for an unemployment deferment , a temporary postponement of your loan repayment. If you don't qualify for a deferment, you may be eligible for a forbearance , a temporary postponement or reduction in your monthly payments. For assistance with a forbearance or to discuss other options you may have, call your lender or EdFund's Default Prevention Services at 800.298.9490.

6. I am in the military and about to be deployed. What are my options?

Your first option is to apply for a military deferment, a temporary postponement of your loan repayment. If you don't qualify for a deferment, you may be eligible for a forbearance, a temporary postponement or reduction in your monthly payments. For assistance with a deferment or to discuss other options you may have, call your lender or EdFund's Default Prevention Services at 800.298.9490.

7. Can my loans be forgiven or canceled?

If you meet certain criteria, your student loan may be forgiven or canceled.

8. How do I resolve a dispute with my school about my student loan?

Talk to your financial aid office and ask them how to file a formal dispute. If you can't resolve the problem through your school's dispute process, check and see if your school has an ombudsman who is trained to resolve disputes from an impartial viewpoint. If they don't, EdFund's ombudsman can help.

9. How is my student loan reported on my credit report?

Your lender reports information to the national credit bureaus on each student loan. If you default on your loan: the loan's guarantor must report your loan as a “collection account.” Once the loan is paid in full, the guarantor updates the reporting to “paid collection account.” Be aware that each default is reported twice—once by your lender and once by the loan's guarantor. If you rehabilitate your loan: a lender will repurchase it and remove it from default. And your guarantor will remove derogatory credit remarks from your credit report. Outdated information: Credit bureaus can remove information after it becomes outdated. If the initial negative report is more than seven years old, your guarantor will delete it. Removal of a negative report does not change your obligation to repay your loan.

10. Can I file bankruptcy to have my loan discharged?

Student loans are generally not dischargeable in bankruptcy.

11. What are my options if I was not satisfied with the quality of education provided by my school?

The terms of the master promissory note you signed do not relieve you of your obligation to repay your student loan because you are dissatisfied with the quality of your academic program. Your best option is to contact the agency responsible for school oversight in your state. You may also contact the agency that accredited your school. A list of accrediting agencies is available on the U.S. Department of Education's Web site.

12. I consolidated my loans. Why was one loan not included?

Borrowers must complete their own consolidation application and sometimes lose track of all the loans they received. If a loan wasn't on the application, it doesn't get included in the consolidation. With all the lenders and agencies involved in the student loan industry, it's very easy to lose track of one's debts. The National Student Loan Data System can help you determine your total student loan debt, the status of your loans and whom you should contact to determine your options.