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Ways to Pay

There are many ways to pay; however, a convenient way to pay your student loan bill is with Direct Debit.

. Once approved, you'll qualify for a 0.25% interest rate reduction! If Direct Debit doesn't work with your current situation, compare the benefits of our other payment options and decide what works best for you.

Direct Debit

Direct Debit sets up an electronic deduction from your checking or savings account on your due date each month. Since your loan payment happens automatically, it's applied effective on your due date, even if your due date falls on a weekend or holiday.

Benefits

  • Direct Debit is a convenient way to make your student loan payments—on time, every month.
  • Direct Debit is a free service. You will also qualify for a 0.25% interest rate reduction upon approval of your application.
  • The electronic deduction from your checking or savings account will occur on the same date each month.
  • Since your loan payment happens automatically, it's never late so long as funds are available.

Important: Continue making payments until you receive confirmation that Direct Debit will extract your next payment. You'll need to use another payment method until we've completed setting up the arrangement of monthly payment extractions with your bank. We'll do this as quickly as possible for you.

Payment Timeline

A Direct Debit payment credits to your account on the day the payment is due, even if your due date is a weekend or holiday. It generally posts to your account within 2 business days of the due date. Your payment may appear as "In Process" in Account Access for a few days while it is pending application.

Paying extra:

Please note: Paying extra may place your loans into paid ahead status.

Make Changes Online

Through , your online account management tool, we make it easy for you to modify your Direct Debit service. In Account Access you can:

  • Change your bank account information
  • Update and target extra funds to specific loans
  • Add a loan not covered by your existing Direct Debit Agreement
  • Suspend your Direct Debit service
  • Cancel your Direct Debit service

Pay Online

Paying online through Account Access gives you the most flexibility when you make a payment, like the option to target payments to individual loans.

Benefits

  • Make payments anytime, day or night.
  • Save your bank accounts for future payments.
  • Pay using any of your saved bank accounts.
  • Schedule payments in advance.
  • Target extra payments to specific loans.

Payment Timeline

You can select any day for an online payment. Payments typically post to your account within 2 business days of the effective date you select. Your payment may appear as "In Process" in Account Access for a few days while it is pending application.

Paying extra: You have the option to target extra payments to specific loans online. Paying extra may place your loans into paid ahead status.

Pay by Mobile App

Paying through our mobile app gives you the opportunity to make a payment no matter where you are.

Benefits

  • Make payments anytime while on the go.
  • Target extra funds to specific loans.
  • Have your bank routing number and account number ready.
  • Save your bank accounts for future payments, or pay using any of your saved bank accounts.
Download on the App Store
Get it on Google Play

Payment Timeline

Any payment you make using your mobile device is effective the day you submit the payment. These payments typically post to your account within 2 business days of that date. Your payment may appear as "In Process" in Account Access for a few days while it is pending application.

Paying extra: You have the option to target extra payments to specific loans online. Paying extra may place your loans into paid ahead status.

Pay by Phone

You can make a payment over the phone any time, day or night, simply by calling 1-800-699-2908 and using our automated phone system. Please have your 10-digit FedLoan Servicing account number and date of birth handy for identification purposes.

Benefits

  • You can select the date the payment will be made—up to 60 days in the future—when you know the funds will be available.
  • Have your bank routing number and account number ready in order to set up an electronic payment.
  • Save your bank account information for future payments or pay using any of your saved bank accounts.

Important: Your phone payment is spread automatically among all loans on your account. For more details on how these payments are applied, please review our payment application examples.

Payment Timeline

You can select any day for a phone payment. Payments typically post to your account within 2 business days of the effective date you select. Your payment may appear as "In Process" in Account Access for a few days while it is pending application.

Paying extra: You have the option to target extra payments to specific loans. Paying extra may place your loans into paid ahead status.

Pay by Mail

Make your check or money order payable to FedLoan Servicing. Then mail to:

Department of Education
FedLoan Servicing
P.O. Box 790234
St. Louis, MO 63179-0234

Include your account number on your check. If you don’t know your account number, provide your social security number.

NOTE: Only send payments to this address. Send all other correspondence, including targeting instructions, to our correspondence address. If correspondence is sent with a check and bill stub we will not receive it to honor your request.

Important:

  • Do not secure your check or money order to other documents with staples, paperclips, or similar. You should include your account number on any additional correspondence associated with your check or money order.

Payment Timeline

We recommend mailing your payment at least 5 to 7 business days before your due date to ensure we receive it on time. These payments are effective on the date we receive them, or on the next business day in the case of a weekend or holiday. Mailed payments are typically posted to your account within 2 business days of the date received. Your payment may appear as "In Process" in Account Access for a few days while it is pending application.

Paying extra: You have the option to target extra payments online, or request in writing that we reapply extra payments to specific loans. Paying extra may place your loans into paid ahead status.

Pay by Third-Party Bill-Pay Services

If you use a bill-pay service or schedule payments through your bank, be sure that they have our correct address so that your payment is sent to the right place. Also, please keep the following information in mind:

  • As your servicer, we don’t have the ability to offer any interest rate reductions or incentives for automatic payments set up through a third party. You may want to enroll in Direct Debit, our automated payment program, to receive a 0.25% interest rate reduction.
  • If your bill-pay service mails us a payment, it will be effective the date we receive it, or on the next business day in the case of a weekend or holiday. If you have questions about whether or not a third party service mailed a payment to us, you should contact them for details.
  • Your bill-payer may not include any additional instructions when they submit your payment, such as in the "memo" text. If you have specific instructions about how we should apply a payment, you need to contact us directly.

Payment Timeline

The payment will be effective the date we receive it from your bill-payer service. These payments typically post to your account within 2 business days of that date. Your payment may appear as "In Process" in Account Access for a few days while it is pending application.

Paying extra: You have the option to target extra payments to specific loans. Paying extra may place your loans into paid ahead status.

Set Up Advance Payments

Through Account Access and by phone you can schedule your payments into the future. Each month, you can schedule a maximum of eight payments up to 60 days in the future. You have the flexibility to set up your payments when you know you'll have funds available.

The option to set up advance payments may be particularly useful if you want to make multiple payments in a given month, or if you prefer to check in on your loans less frequently.

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Payment Processing

Payment Effective Dates

If you're on Direct Debit or mail us a payment that we receive on a weekend or holiday, we will process it effective the date we receive it. However, your payment may take a few days to be processed or to post to your account. We may credit your payment to your account a few days before you can see it online in Account Access.

Payment Application

First, we satisfy the outstanding interest and the amount due. Then we apply any extra funds toward future payments. If you would like to pay more than the minimum amount due on a specific loan, you should target your payments.

Because interest accrues daily, the portion of your payment that is applied to interest depends on the number of days since your last payment. Learn more about interest.

To review a past payment, sign into Account Access and select "Payment History" under the "Payment and Billing" tab on the left-hand side. Choose the payment you would like to review and select "View Details" to see how much applied to interest and principal.

Overpayments

Paying more than the Total Due on your loans may reduce the amount of interest you will pay over time, saving you money in the long run.

If you are not working toward PSLF, pay more than the total amount due, and do not provide payment instructions, your additional payment will be applied to the loan with the highest interest rate. All loans currently have a 0% interest rate due to the COVID-19 emergency relief measures. For this reason, we determine the highest interest rate based on each loan's interest rate as of March 12, 2020 (before the relief measures went into effect). For loans disbursed after March 12, 2020, we use the initial interest rate.

  • If more than one loan has the same highest interest rate, your additional payment will be applied to any unsubsidized loans proportionately based on the monthly amount due or principal balance of each loan.
  • If there are no unsubsidized loans, your additional payment will be applied to any subsidized loans proportionately based on the monthly amount due or principal balance of each loan.

If you are working towards PSLF, pay more than the total amount due, and do not provide payment instructions, your additional payment will be applied proportionately across your loans based on the monthly amount due or principal balance of each loan. Please note that during the COVID-19 emergency suspension period, you are not required to make payments. See the COVID-19 Relief for Student Loan Borrowers page for more information.

Underpayments

If you do not provide instructions for your payment that is less than the Total Due for all loans (see the Targeting Payments page), your payment will be applied to your loans in the order of most delinquent to least delinquent. Once your loans reach an equal level of delinquency, any remaining amount will be applied proportionately based on the monthly amount due for each loan.

If you do not satisfy the full amount due, your account will remain past due. However, if you are able to make partial payments that satisfy past due bills, you may be able to reduce the level of delinquency (number of days past due) of your loans. These partial payments can help prevent default and other consequences of delinquency.

It is important to make your payments on time each month so your loan doesn't become delinquent. Delinquent loans are at risk for negative credit reporting. If you can't afford to make a payment or your account is already past due, we may be able to help you!

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Paying Ahead

Paying ahead is when you put additional amounts towards your loan balances, above and beyond what is due on a monthly basis.

Benefits of Paying Ahead

There is no limit to the amount you may pay each month. By paying ahead of schedule or paying more than the monthly payment amount due, you:

  • Pay less interest over the life of the loan
  • Repay your loan earlier

To experience these benefits, you must continue to pay at least your regular payment amount every month regardless of the current amount due. If the current amount due is $0 and you decide not to pay, your loan may no longer be "paid ahead," and you may lose the associated benefits.

The bottom line? Pay more now to save more later on your loan.

Paying on an Income-Driven Repayment (IDR) Plan

You cannot pay ahead past your IDR anniversary or recertification date. Any extra funds remaining at the time of your IDR anniversary or recertification deadline will be immediately applied to your loans (not to a future bill), and your paid ahead status will end. However, you still have the option of paying extra, and you can enter paid ahead status again, through your next IDR anniversary or recertification.

Considering Public Service Loan Forgiveness (PSLF)

Paying ahead while seeking PSLF can adversely affect your qualifying payment count. If you pay extra and enter a paid ahead status while seeking PSLF, any future bills that you satisfy may not immediately count as qualifying payments. If you want to pay more than your required monthly payment, please contact us and request to have paid ahead status permanently removed.

How to Get Started

You can pay an additional amount at any time using the payment method of your choice.

We always apply additional payments to any interest that has accrued to date and then to your principal balance. But how paying ahead affects your next monthly payment depends on whether you use Direct Debit or not:

  • If you do not use Direct Debit: Your current amount due may be less than your regular monthly payment (the regular monthly payment amount minus the additional amount that you paid)
  • If you use Direct Debit: We withdraw your payment (plus any additional amount you request) through Direct Debit every month regardless of your "paid ahead" status

Don't understand how this works? Read some examples:

Example 1

Ann just got her tax refund and uses it to pay $300 toward her student loans. Ann's next billing statement shows $0 current due. Ann doesn't understand why she owes nothing, since she intended her $300 to go toward principal not her monthly payment.

Explanation 1

If you pay more than your monthly payment amount, we apply the additional amount first to any outstanding interest and then to your principal balance. So your next bill may show that you owe nothing or only a partial payment.

Example 2

Joe has us withdraw $100 through Direct Debit each month. In July, he gets a bonus at work and decides to pay online 2 weeks early. Joe is upset when he checks his bank statement and sees that we still withdrew his full payment amount this month, especially since he thought he already paid it.

Explanation 2

Paying your monthly amount early (by telephone, mail, or online), before your payment is due, does not stop a Direct Debit transaction.

Example 3

Elsa pays $20 extra on her student loans every month through Direct Debit. Her extra payments add up to where she is "paid ahead" by a full month, and her billing statement shows $0 current due. Assuming she doesn't have to pay this month, Elsa is shocked when we debit her account for the full amount plus the extra $20.

Explanation 3

With Direct Debit, we withdraw your payment every month, plus any additional amount you request, regardless of what your billing statement shows.

Special Considerations for Direct Debit Users

To have us withdraw an additional amount from your checking or savings account every month, indicate the amount when you complete your online Direct Debit application. We withdraw your payment through Direct Debit every month plus any additional amount you request, even if:

  • Your monthly payment amount changes
  • You pay your monthly amount early (by telephone, mail, or online), before your payment is due
  • You pay more than your monthly payment amount so your loan is in "paid ahead" status

We prorate any additional amount we withdraw through Direct Debit across all loans with the same due date.

To target an additional payment to a specific loan, sign in to .

To change the additional amount we withdraw each month, .

How to Opt Out of Paid Ahead

Overpayments may result in a paid ahead status. If you do not want overpayments to be applied to future bills, contact us to opt out of paid ahead status. You can email us through your online account or call us at 1-800-699-2908.

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Targeting Payments

If you want to pay more than the minimum amount due on your bill, you may target the extra funds to specific loans.

Paying Extra on Your Loans

  • Gives you the choice of where you want the extra money to go
  • May reduce the interest you will pay over time
  • Can save you money in the long run

You may want to target the extra funds to unsubsidized loans, loans with high balances, or loans with higher interest rates.

If you pay more than the total amount due and do not provide payment instructions, the additional amount will be allocated to the loan with the highest interest rate. Because all loans currently have a 0% interest rate due to the CARES Act, any additional amount will be allocated based on the interest rate for each loan as of March 12, 2020 or the initial interest rate for any loan disbursed after that date. If more than one loan has the same highest interest rate, the additional amount will be allocated to any unsubsidized loans proportionately based on the monthly amount due or principal balance of each loan. If there are no unsubsidized loans, the additional amount will be allocated to any subsidized loans proportionately based on the monthly amount due or principal balance of each loan.

When you pay extra, you may also satisfy any future bills for your loans, excluding those with a $0.00 payment on an Income-Driven Repayment plan, which may place your account in a paid ahead status.

Target Payments Online

Simply to target payment amounts to specific loans. You must pay AT LEAST the minimum amount due on each loan sequence, or your account will go past due.

For instructions on how to target specific amounts to specific loans, review our FAQ.

How to Target Payments by Special Arrangement

The easiest way to target your payments is to pay online. However, if you want to have all of your future extra funds applied in the same way, you can write to us and provide standing instructions using one of the following methods:

  • Mail or FaxContact us at our correspondence address or by fax. Do not send instructions with your check, money order, or bill stub!
  • Email—To provide instructions by email, please contact us through Account Access.

You will need to specify how you want your extra funds applied to your individual loans, and you'll need to identify your loans by disbursement date and loan type (which you can find in Account Access). We can help you through this process if you contact us, or you can see an example of what you may want to include with your request by reviewing the Consumer Finance Protection Bureau's sample letter (DOC) about providing such instructions.

If you decide to pay extra every month through , no standing instructions are necessary. When you enroll in , you may specify an additional amount you would like to pay each month towards specific loans.

Simply to target payment amounts to specific loans. If you ever need us to reapply a payment you previously made, we can accommodate that as well.

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Tax Information

If you make payments that are applied to interest, you can deduct up to $2,500 a year on your end of year taxes.

FedLoan Servicing's Federal Identification Number, or EIN, is 52-1198289

Get Your Tax Info Online Today!

  • If your loans transferred to us, we only report tax information to you for the payments you made directly to us after the transfer. You should receive tax information from your previous servicer to account for payments made before the transfer (if applicable).
  • If you paid $600 or more in interest OR had $600 or more in debt cancelled and you are:
    • Signed up for Paperless Tax
      We emailed your tax form and you will receive it by the end of January.
    • NOT signed up for Paperless Tax
      We mailed your tax form and you will receive it by end of January.
  • If you paid less than $600 in interest OR had less than $600 in debt cancelled, you must sign in to Account Access to get your tax information. You will not have a tax form, but you can view and print a Tax Summary Letter when it is available.
  • You can get your tax information through our automated phone system by calling 1-800-699-2908. You will need your account number to retrieve this information.

We cannot advise you on tax matters. If you have questions, contact a tax professional or the IRS at 1-800-829-1040 or IRS.gov.

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Loan Payoff

To pay off your loans or obtain a payoff amount, simply and select "Loan Payoff" under Payments & Billing. You may also call 1-800-699-2908 (toll-free U.S. and Canada) to obtain your payoff amount.

If You Mail Your Payment

We must receive it within 10 calendar days of acquiring your official payoff amount.

If we don't receive it within 10 days:

  • It may not satisfy the outstanding principal and interest.
  • You will need to get a new payoff amount.
  • Daily interest will continue to accrue until we receive payment for the accurate payoff amount.
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Payments Near Disbursement Date

Payments Made Within 120 Days of Disbursement

When you make a payment while your loans are not in repayment status within 120 days of your disbursement on your Direct, Grad PLUS, or Parent PLUS loan it is applied as a borrower cancellation.

  • Borrower cancellations reduce what you originally borrowed. Any interest charged on the amount you pay back will be reduced, and a portion of the loan origination fees may also be reduced.
  • It will automatically be applied as a borrower cancellation effective the day of your disbursement to your unpaid balance unless you contact us in writing to ask that it be applied as a regular borrower payment (first to accrued interest, then to principal).

For PLUS loans that are in repayment, have an active repayment schedule, and have disbursements within 120 days, the payments will automatically be applied as a normal borrower payment to interest and principal. If you want payments during this time to be applied as a borrower cancellation, please send a written request through our secure email and ask for it to be treated as a borrower cancellation.

When you make a payment within 120 days of your disbursement on your federal consolidation loan, your payment will be applied in this order:

  1. To accrued interest
  2. To the principal on the unsubsidized loan with the highest interest rate

Payments Made After 120 Days of Disbursement

When you make a payment after 120 days from the disbursement date on any of your loans, your payment will be applied as a normal borrower payment. For more information on how payments apply, see Payment Processing.

For loans in forbearance, any amount that goes to principal will be applied to the highest interest rate loans, beginning with the unsubsidized loans.

For a Direct Subsidized loan taken out after July 1, 2012 and before July 1, 2014, interest is not subsidized (i.e., not paid for by the government) during the loan's grace period. You're responsible for interest that accrues during your grace period. If you make payments during your grace period, any paid interest will not be capitalized.