EDFUND
Encyclopedia
EdFund is the United States' second largest provider of student loan guarantee services under the Federal Family Education Loan Program (FFELP). It is organized as a non-profit public benefit corporation. EdFund offers students and their families a wide range of information on the value of higher education, how to pursue it, how to pay for it, and debt management. In addition, EdFund supports schools with advanced loan processing solutions and default prevention techniques. EdFund is a trusted source of information for students and their families
Operating as an auxiliary corporation of the California Student Aid Commission, EdFund processes more than $9.3 billion in student loans in the United States
annually (including Consolidation loans) and manages a portfolio of outstanding loans valued at $29 billion.
EdFund is headquartered in Rancho Cordova, California
with regional offices located throughout the United States.
EdFund was organized as a 501(c)(3) public benefit corporation pursuant to legislation authorizing the Commission to establish a nonprofit auxiliary to administer all activities associated with its participation in the federal student loan program.
Today, EdFund provides all operational and administrative services related to the Commission’s participation in the federal student loan program, and is a growing national provider of student financial aid services.
"On August 27, 2010, the U.S. Department of Education selected Educational Credit Management Corporation (ECMC) to assume the guarantor responsibilities of CSAC effective November 1, 2010; consequently, all federal student loans guaranteed by CSAC and serviced through EdFund have been transferred to ECMC for ongoing servicing.
EdFund staff will continue to service the non-defaulted segment of the former CSAC portfolio per an agreement with ECMC. Also as part of this agreement, EdFund will provide ECMC with transition services, systems and web services."www.edfund.org
article describes how in certain circumstances, EdFund’s practices can take an original loan of $37,000 and drive the repayment cost well over $100,000. The article quotes Elena Ackel, a senior attorney at Legal Aid Foundation of Los Angeles, as describing EdFund as “an oppressive system.”
In 2006, a California state auditor strongly criticised EdFund, finding that the organization exercised lax oversight and made questionable spending decisions. The auditor found that EdFund spent thousands of dollars on entertainment, travel, and executive bonuses, at a time when the loan program faced an $8.3 million operating deficit. The California Student Aid Commission was cited for lax oversight of EdFund.
Operating as an auxiliary corporation of the California Student Aid Commission, EdFund processes more than $9.3 billion in student loans in the United States
Student loans in the United States
While included in the term "financial aid," higher education loans differ from scholarships and grants in that they must be paid back. They come in several varieties in the United States:...
annually (including Consolidation loans) and manages a portfolio of outstanding loans valued at $29 billion.
EdFund is headquartered in Rancho Cordova, California
Rancho Cordova, California
Rancho Cordova is a city in Sacramento County, California, USA, that incorporated in 2003. It is part of the Sacramento Metropolitan Area. The population was 64,776 at the 2010 census. Rancho Cordova is the Sacramento area's largest employment sub-center, with a daily influx of over 45,000...
with regional offices located throughout the United States.
History
EdFund is a nonprofit corporation founded by the California Student Aid Commission on January 1, 1997.EdFund was organized as a 501(c)(3) public benefit corporation pursuant to legislation authorizing the Commission to establish a nonprofit auxiliary to administer all activities associated with its participation in the federal student loan program.
Today, EdFund provides all operational and administrative services related to the Commission’s participation in the federal student loan program, and is a growing national provider of student financial aid services.
"On August 27, 2010, the U.S. Department of Education selected Educational Credit Management Corporation (ECMC) to assume the guarantor responsibilities of CSAC effective November 1, 2010; consequently, all federal student loans guaranteed by CSAC and serviced through EdFund have been transferred to ECMC for ongoing servicing.
EdFund staff will continue to service the non-defaulted segment of the former CSAC portfolio per an agreement with ECMC. Also as part of this agreement, EdFund will provide ECMC with transition services, systems and web services."www.edfund.org
Governance
EdFund is governed by a board of directors that meets quarterly. The company also has regional offices located across the nation.Criticisms
EdFund has been criticized for its collection policies and punitive practices, as well as the salaries paid to executive officers. A 2007 San Francisco ChronicleSan Francisco Chronicle
thumb|right|upright|The Chronicle Building following the [[1906 San Francisco earthquake|1906 earthquake]] and fireThe San Francisco Chronicle is a newspaper serving primarily the San Francisco Bay Area of the U.S. state of California, but distributed throughout Northern and Central California,...
article describes how in certain circumstances, EdFund’s practices can take an original loan of $37,000 and drive the repayment cost well over $100,000. The article quotes Elena Ackel, a senior attorney at Legal Aid Foundation of Los Angeles, as describing EdFund as “an oppressive system.”
In 2006, a California state auditor strongly criticised EdFund, finding that the organization exercised lax oversight and made questionable spending decisions. The auditor found that EdFund spent thousands of dollars on entertainment, travel, and executive bonuses, at a time when the loan program faced an $8.3 million operating deficit. The California Student Aid Commission was cited for lax oversight of EdFund.
See also
- College tuition in the United States
- Post-secondary education
- Private universityPrivate universityPrivate universities are universities not operated by governments, although many receive public subsidies, especially in the form of tax breaks and public student loans and grants. Depending on their location, private universities may be subject to government regulation. Private universities are...
- Student benefitStudent benefitStudent benefits are transfer payments that are given to students for purposes of full-time study, and require progress in studies, or obtaining academic credits. Student benefits are found in countries where education is free of charge, e.g. Finland and Sweden...
- Student debtStudent debtStudent debt is a form of debt that is owed by an attending, withdrawn or graduated student to a lending institution. The lending may usually be a student loan, but debts may be owed to the school if the student has dropped classes and withdrawn from the school Student debt is a form of debt that...
- Student loanStudent loanA student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education...
- Student loans in the United StatesStudent loans in the United StatesWhile included in the term "financial aid," higher education loans differ from scholarships and grants in that they must be paid back. They come in several varieties in the United States:...
- Tuition fees
- Tuition freezeTuition freezeTuition freeze is a government policy restricting the ability of administrators of post-secondary educational facilities to increase tuition fees for students. Although governments have various reasons for implementing such a policy, the main reason cited is improving accessibility for working-...