- EDFUND
EDFUND, a
nonprofit public benefitcorporation , is the nation’s second largest provider ofStudent loans in the United States guarantee services under the Federal Family Education Loan Program (FFELP). EDFUND offers students a wide range offinancial aid and debt management information while supporting schools with advanced loan processing solutions and default prevention techniques.Operating as an auxiliary corporation of the [http://www.csac.ca.gov/ 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 nation.History
EDFUND is a nonprofit corporation founded by the [http://www.csac.ca.gov/ 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.
Governance
EDFUND is governed by a board of directors that meets quarterly, often at the company's headquarters in
Rancho Cordova, California . The company also has regional offices located across the nation.Criticisms
EdFund has been criticized for its collection policies, high interest rates, and punitive practices, as well as the salaries paid to executive officers. A 2007 San Francisco Chronicle 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. [ [http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/05/16/MNGL5PRQ8C1.DTL "Student loan agency faces new scrutiny", San Francisco Tribune, May 16, 2007] ] 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. [ [http://findarticles.com/p/articles/mi_qn4176/is_20060422/ai_n16208652 "State audit slams student loan agency", Oakland Tribune, April 22, 2006] ] 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.References
External links
* [http://www.edfund.org/ EdFund website]
* [http://www.edwise.org/ EdWise website]
* [http://www.csac.ca.gov/ California Student Aid Commission]
* [http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/05/16/MNGL5PRQ8C1.DTL "Student loan agency faces new scrutiny", San Francisco Chronicle, May 16, 2007]
Wikimedia Foundation. 2010.
