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Ways to Pay

There are many ways to pay; however, the best 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 the most convenient way to make your student loan payments—on time, every month.
  • Direct Debit is a free service. And you qualify for a 0.25% interest rate reduction when your application is approved.
  • Set up an electronic deduction from your checking or savings account 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 get confirmation that Direct Debit will extract your next payment. You'll need to use another payment method until we're ready to start working directly with your bank to set up your monthly payment extracts. 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. We may credit your payment to your account a few days before you can see it online in Account Access.

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.

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

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, or pay using any of your saved bank accounts.
  • Schedule payments in advance.
  • Target extra payments to specific loans.

Payment Timeline

You can select any business day (Monday–Friday) for an online payment. Payments typically post to your account within 2 business days of the effective date you select. We may credit your payment to your account a few days before you can see it online in Account Access.

Due dates that fall on a weekend: Select a payment date at least 1 business day before your due date.

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 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.
  • 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 (or in the case of a weekend or holiday, on the next available business day). These payments typically post to your account within 2 business days of that date. We may credit your payment to your account a few days before you can see it online in Account Access.

Due dates that fall on a weekend or holiday: Select a payment date at least 1 business day before your due date.

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 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. All you need is your 10-digit 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.
  • Save your bank accounts 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 business day (Monday–Friday, excluding holidays) for a phone payment. Payments typically post to your account within 2 business days of the effective date you select. We may credit your payment to your account a few days before you can see it online in Account Access.

Due dates that fall on a weekend or holiday: Select a payment date at least 1 business day before your due date.

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 Mail

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

Department of Education
FedLoan Servicing
P.O. Box 530210
Atlanta, GA 30353-0210

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:

  • We electronically process all paper checks. This means we capture your bank account and routing numbers from your check and electronically deduct a one-time payment from your account.
  • 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. We may credit your payment to your account a few days before you can see it online in Account Access.

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:

  • We can't offer any interest rate reduction or incentive 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 you or 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 sent 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, or on the next business day in the case of a weekend or holiday. These payments typically post to your account within 2 business days of that date. We may credit your payment to your account a few days before you can see it online in Account Access.

Due dates that fall on a weekend or holiday: Your bill-payer service should submit your payment at least 1 business day before your due date.

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.

Set Up Advance Payments

Through Account Access and by phone you can schedule up to eight payments in a 60 day period. You have the flexibility to set up your payments when you know you'll have funds available—but keep in mind that:

  • Payments cannot be scheduled for Saturdays or Sundays
  • You cannot schedule payments on a holiday when paying by phone

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

We generally do not accept payment transactions on weekends or holidays. 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, but it may take a few days for processing or to post to your account. You should submit payments for due dates falling on a weekend or holiday on the business day before your due date. We may credit your payment to your account a few days before you can see it online in .

Payment Application

When you make a payment, we count the number of days since we processed your last payment to determine how much interest has accrued since that time. 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.

Payments typically post to your account within 2 business days of the date we receive them. We may credit your payment to your account a few days before you can see it online in Account Access.

To review a past payment, sign in to 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.

For more details on how payments are applied and processed, please review the specific account status:

Payment on Current Account

When your loan is not past due, we apply your full payments like this:

  1. Accrued interest—The amount of interest that accrued every day between the date of the last payment and the new payment is satisfied first.
  2. Current principal balance—The remainder then applies toward your current principal balance.
  3. Extra amount—If you pay more than the total amount due, we will apply the extra amount toward the principal amount due of a future bill (if you have one), unless you qualify for a $0.00 payment with Income-Driven Repayment. The extra amount is spread across your loans based on the amount due for each loan. This may place your loans in a paid ahead status.
Payment on Past Due Account

When your loan is past due, we apply your full payments like this:

  1. Accrued interest—The interest that accrued every day between the date of the last payment and the new payment is satisfied first.
  2. Past due balance—Once all accrued interest is satisfied, the payment is applied next to your past due balance before we apply any funds to your current principal balance.
  3. Current principal balance—The remainder then applies toward your current principal balance.
  4. Extra amount—If you pay more than the total amount due, we will apply the extra amount toward the principal amount due of a future bill (if you have one), unless you qualify for a $0.00 payment with Income-Driven Repayment. The extra amount is spread across your loans based on the amount due for each loan. This may place your loans in a paid ahead status.
Partial Payment on Current Account

When your loan is not past due, we apply your partial payments like this:

  1. Accrued interest—The interest that accrued every day between the date of the last payment and the new payment is satisfied first. If you have multiple loans and your partial payment doesn't satisfy the full amount of accrued interest due, the payment is spread across your loans based on the amount due for each loan.
  2. Current principal balance—If your partial payment satisfies all of the accrued interest, the remainder then applies toward your current principal balance. If you have multiple loans, the remainder of your partial payment is spread across your loans based on the amount due for each loan.

If you do not fully satisfy the total amount due, your loans will be past due.

For Example: If you have two loans that have $25.00 due and one loan that has $100.00 due, more of the payment will go to the loan due for $100.00, so that it doesn't become more past due than the other loan.

Partial Payment on Past Due Account

When your loan is past due, we apply your partial payments like this:

  1. Accrued interest—The interest that accrued every day between the date of the last payment and the new payment is satisfied first. If you have multiple loans and your partial payment doesn't satisfy the full amount of accrued interest due, the payment is spread across your loans based on the amount due for each loan.
  2. Past due balance—Any remainder is applied next to your past-due balance before we apply any funds to your current principal balance. If you have multiple loans and your partial payment doesn't satisfy the full past due balance, the payment is spread across your loans based on the amount due for each loan.
  3. Current principal balance—If your partial payment satisfies all of the accrued interest, the remainder then applies toward your current principal balance. If you have multiple loans, the remainder of your partial payment is spread across your loans based on the amount due for each loan.

If you do not fully 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. This 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 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 make an additional payment on a specific loan, you must pay online. Or call one of our experienced counselors for information about paying by mail.

To change the additional amount we withdraw each month, you will need to submit a new Direct Debit application. to add, remove, or change the additional amount withdrawn for your existing Direct Debit.

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Targeting Payments

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

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 wish 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 don't target your payment, we will apply the extra amount toward a future bill (if you have one), unless you qualify for a $0.00 payment with Income-Driven Repayment. The extra amount is spread across your loans based on the amount due for each loan.

NOTE: Paying more than the minimum amount due could 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 , standing instructions will be the easiest, ongoing method for you to target payments.

If you ever need to target a one-time extra payment or amount, or if you 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.

Get Your Tax Info Online Today!

View and print your 2017 tax information by 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).
  • FedLoan Servicing provides your tax information online at Account Access. Once logged into Account Access, you can view and/or print your:
    • IRS Form 1098-E (Amount of Interest Paid)
    • IRS Form 1099-C (Cancellation of Debt), if applicable
    • Tax Summary Statement (if amount is not reported to IRS)

NOTE: If you paid less than $600 in interest, you will not receive the information by mail, but we will email you instructions to retrieve it through your online account.

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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.