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 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.
Paying online through Account Access gives you the most flexibility when you make a payment, like the option to target payments to individual loans.
Pay by Mobile App
Paying through our mobile app gives you the opportunity to make a payment no matter where you are.
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.
Pay by Mail
Make your check or money order payable to FedLoan Servicing. Then mail to:
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:
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.
Payment application is the way payments are applied to individual loans. See Overpayments and Underpayments below for information on how payments are allocated when you have multiple loans and are paying more or less than the amount due.
Payments are applied first to outstanding interest and then to principal. Because interest accrues daily, the portion of your payment that is applied to interest, rather than to principal, depends on the number of days since your last payment. Learn more about interest.
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.
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 overpayment will be allocated in the following manner:
- To the loans with the highest interest rate. This applies even if you are on an Income-Driven Repayment plan with a lower payment amount or even a $0 required payment amount.
- If more than one loan has the same highest interest rate, the overpayment will go to any unsubsidized loan with the highest interest rate.
- If there is more than one unsubsidized loan with the same highest interest rate, the overpayment will be allocated proportionately across such loans based on the regular monthly payment amount or loan balance if not all loans at the point of proration have a regular monthly payment amount.
- If there are no unsubsidized loans with the highest interest rate, the overpayment will be allocated to subsidized loans with the same highest interest rate proportionately based on the regular monthly payment amount or loan balance if not all loans at the point of proration have a regular monthly payment amount.
If you are working toward PSLF, pay more than the total amount due, and do not provide payment instructions, your overpayment will be applied proportionately across your loans based on the monthly amount due or balance of each loan.
Still have questions? Review the example that fits your scenario:
Are you working toward PSLF?
Review overpayment processing examples if you are working toward PSLF (PDF)
Are you NOT working toward PSLF?
Review overpayment processing examples if you are not working toward PSLF (PDF)
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 allocated 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 total 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 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!
Still have questions? Review the payment processing examples (PDF) for making underpayments.
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:
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.
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.
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.
Paying your monthly amount early (by telephone, mail, or online), before your payment is due, does not stop a Direct Debit transaction.
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.
With Direct Debit, we withdraw your payment every month, plus any additional amount you request, regardless of what your billing statement shows.
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 Fax—Contact 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.
If you make payments that are applied to interest, you can deduct up to $2,500 a year on your end of year taxes.
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.
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:
- To accrued interest
- 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.