EdFinancial Services Took my money! Knoxville Tennessee

The amount paid most likely went to the interest you accrued while you did not make a payment, since you accrue interest everyday.  Edfinancial's student loans are not turned over to a collection agency, once you have hit 270 days delinquent you begin the default process.  If you have not made arrangements during that time to resolve your delinquency through payments, deferments or forbearance, the guarantor on your loan will pay your loan and then you get to deal with them, the guarantor.  They may use a collection agency, but Edfinancial does not. 

If your loan is more now than it was, it could be because of interest capitalization due to a forbearance or a deferment ending.  If you did not pay on the accruing interest during the forbearance or deferment then it will be capped onto the original balance, less any payments.  Another thing that could happen, is that there is extra cost associated with defaulting your loans.  If you are sent to the guarantor because you did not make a payment or other arrangements to bring them current, you will have fees and interest capitalization. 

I am pretty familiar with Edfinancial and I do owe them a lot of money myself.  It is very important that you educate yourself on what loans you take out.  Also, it is always good to call any place you owe money to that you are unable to pay.  It could keep problems from coming up in the log run.