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Direct Debit FAQ


Introduction to Direct Debit

Can you automatically deduct my payments from my bank account every month?

Yes, we offer an automated payment service called Direct Debit. It's free, it's convenient, and you may qualify for an interest rate reduction for using this service. Apply for Direct Debit.

What is Direct Debit?

Direct Debit is a free, automated payment service. It's not only convenient—you don't have to write a check or pay for a stamp—you may also qualify for an interest rate reduction when you use Direct Debit.

How does Direct Debit work?

You must apply for Direct Debit. If we approve your Agreement, we will electronically withdraw your monthly payment - along with any additional amount you request from your bank account and apply it to your student loan account.

This automated transaction usually happens on the same date each month.

If your due date falls on a weekend or holiday, we will withdraw the payment from your bank account the following business day.

Why sign up for Direct Debit?

Direct Debit is the most convenient way to make your student loan payments.

  • Save money. You don't need to purchase stamps and envelopes or pay for checks. In addition, you may even qualify for an interest rate reduction. Please contact us to find out if your lender offers this incentive.
  • Don't Worry. No more late fees since we automatically withdraw your monthly payments from your bank account, they're never late (as long as the funds are available).
  • Save time. Your time is valuable. The transaction is automated, so you won't need to write checks or sign in every month to make your payments.

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Signing Up for Direct Debit

Am I eligible for Direct Debit?

You are eligible for Direct Debit if:

  • You have loans in repayment. Loans not currently in repayment are ineligible for this service until they have entered repayment.

    Please note: Loans for which you receive a monthly or quarterly interest bill aren't eligible for Direct Debit until they enter repayment. To find out if you are eligible, visit aesSuccess.org/AutomaticPayments.

  • You were not previously disqualified from using Direct Debit due to having insufficient funds.
Can I sign up for Direct Debit if I am past due on my loans?

Yes. You are able to sign up for Direct Debit at any time. However, you should make every effort to satisfy any outstanding payments before your Direct Debit begins. Unsatisfied payments will remain in a past due status, which may result in telephone calls and letters, and may be reported as delinquent to the consumer reporting agencies.

Learn more about other payment methods.

How do I apply for Direct Debit?

Visit aesSuccess.org/AutomaticPayments to apply online!

NOTE: If your student loan account defaulted to PHEAA, you will need to download and print the Direct Debit Default Collections Agreement (PDF) in order to sign up for Direct Debit. Complete, sign, and fax or mail the Direct Debit Default Collections Agreement back to us. Remember to keep a completed copy for your records.

Fax: (717) 720-3644
Attn: PHEAA Default Collections

Mail: PHEAA Default Collections
P.O. Box 8147
Harrisburg, PA 17105-8147

How will I know when my Direct Debit the service begins?

We will provide a notification that confirms the date and actual amount of your first Direct Debit payment. Your monthly bill will also include a message informing you that the payment is scheduled to be withdrawn.

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Using Direct Debit

Will I still get a paper bill?

Yes, we will send you a monthly bill that details your Direct Debit payments. If you are enrolled in our Paperless Services, a payment bill will not be mailed to you, but will be available in your paperless inbox each month.

Can I pay more than my monthly payment amount through Direct Debit?

Yes! If you wish to pay more than your minimum monthly payment amount each month, you can enter an additional amount when completing your Direct Debit Agreement. We will continue to withdraw this additional amount even if there is a change to your scheduled monthly payment amount. However, if your monthly installment amount is $0.00, we will not withdraw the additional amount you may have requested.

If you would like to increase or decrease the additional amount that is withdrawn each month or specify which loans to apply the additional amount to, you may do so by visiting aesSuccess.org/AutomaticPayments.

Discover the benefits of paying ahead.

If I pay manually before my due date, do you still withdraw a monthly payment through Direct Debit?

Yes. We withdraw your monthly payment (plus any additional amount you request) through Direct Debit every month, even if:

If you do not want us to withdraw your monthly payment for any reason, you must contact us or visit aesSuccess.org/Automatic Payments at least 3 business days before your due date to suspend your Direct Debit service. You must continue to pay every month using another payment method during the time we suspend your service.

NOTE: Any interest rate reduction you receive for paying your loans under Direct Debit may be lost during payment periods for which you suspend Direct Debit payments

Do I receive an interest rate reduction if my Direct Debit service is temporarily suspended?

Any interest rate reduction you receive for paying your loans under Direct Debit may be lost during payment periods for which you suspend Direct Debit payments. To avoid a lapse if you receive this incentive, we encourage you to continue Direct Debit without interruption.

What if my due date falls on a weekend or holiday?

We will withdraw the payment from your bank account the following business day.

If I do not have enough money in my bank account on my due date, what should I do?

Notify us immediately if your bank account will not have the available funds on your scheduled due date. Contact us via telephone or visit aesSuccess.org/AutomaticPayments at least 3 business days before the scheduled transaction, as we may be able to temporarily suspend your Direct Debit service.

If you do not ask us to suspend your Direct Debit service and your bank reports that there are insufficient funds, your payment will remain outstanding until we receive another method of payment. We will not attempt a second debit from your account. If your payment is returned due to insufficient funds for 3 months in a 12 month period, your Direct Debit will be cancelled.

NOTE: Any interest rate reduction you receive for paying your loans under Direct Debit may be lost during payment periods for which you suspend Direct Debit payments.

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Changes to Direct Debit

What if my Direct Debit payment amount changes?

We will let you know your new payment amount. Unless you notify us of your intent to discontinue your Direct Debit service, we will withdraw this new amount (and any additional amount you have requested) automatically from your bank account on your scheduled due date.

What if I want to change the additional amount I pay each month?

If you want to change the additional amount you requested to pay each month, visit aesSuccess.org/AutomaticPayments. By managing your Direct Debit Agreement online, you decide which loans you want your additional amount to be applied to.

What if my financial institution or account information changes?

If your bank account information changes, you can update the bank account used to withdraw funds by visiting aesSuccess.org/AutomaticPayments.

It's important you notify us, as it may be necessary for us to suspend any pending transactions in order to prevent a debit from an inactive bank account. Contact us at least 3 business days prior to your scheduled payment date.

NOTE: Any interest rate reduction you receive for paying your loans under Direct Debit may be lost during payment periods for which you suspend Direct Debit payments. If there is a need to suspend your upcoming Direct Debit payment while your bank information is being updated, Direct Debit will not be active and you must make your payment using another payment method.

What happens to my Direct Debit if I request a deferment or forbearance?

To prevent an unwanted withdrawal while your deferment or forbearance request is being processed, contact us or visit aesSuccess.org/AutomaticPayments to suspend your Direct Debit service. We automatically suspend your Direct Debit service if your deferment or forbearance is approved.

At the end of your deferment or forbearance, your Direct Debit service will resume on your regularly scheduled due date, unless you notify us that you no longer want to participate in this service.

NOTE: Any interest rate reduction you receive for paying your loans under Direct Debit may be lost during payment periods for which you suspend Direct Debit payments. In addition, if you are receiving an interest rate reduction, you will not receive it during any period of deferment or forbearance.

If I have new loans that come into repayment, will they automatically be included in my Direct Debit Agreement?

No. However, you can add these loans to your Direct Debit Agreement by visiting aesSuccess.org/AutomaticPayments.

Can I suspend my Direct Debit service?

You can suspend your Direct Debit service six times in a 12 month period.

You must contact us or visit aesSuccess.org/AutomaticPayments at least 3 business days before your due date to suspend your Direct Debit service. You must continue to pay every month using another payment method during the time we suspend your service.

NOTE: Any interest rate reduction you receive for paying your loans under Direct Debit may be lost during payment periods for which you suspend Direct Debit payments.

How do I cancel or discontinue my Direct Debit service?

You must contact us via telephone or provide us a signed, written request to cancel your Direct Debit Service. This request can be faxed, mailed, or emailed.

Please allow up to 10 business days for us to process this request.

If your due date falls within this processing window, contact us via telephone or visit aesSuccess.org/AutomaticPayments at least 3 business days before the scheduled transaction, as we may be able to temporarily suspend your Direct Debit.

NOTE: If you qualified for an interest rate reduction for using this service, that reduction will be removed once you discontinue Direct Debit.

What will happen if I am on Direct Debit and my final payment is less than my regular monthly withdrawal amount?

If your final payment is less than your regular monthly payment amount, the final debit will be adjusted to only withdraw the remaining amount due.

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