You may pay more than your monthly installment amount at any time, using the payment method of your choice. When you pay more, your account may reflect a paid ahead or partially paid ahead status, based on your loan agreement. If you use Direct Debit you can request to have an additional amount withdrawn each month along with your scheduled monthly installment.
Benefits of paying ahead
By paying more than the monthly payment amount due, you:
- Pay less interest over the life of your loan
- Repay your loan earlier
To experience these benefits listed above you can continue to pay 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!
What will my bill look like if I am in paid ahead status? Can I continue to make payments?
If you satisfy a full future installment, your total amount due may reflect $0 on your next monthly bill. If you receive a bill for $0 amount due, it may benefit you to continue to pay since interest continues to accrue. Learn more about interest accrual. It may be necessary to continue to pay the full Monthly Payment amount when your loans are paid ahead in order to qualify for benefit programs, such as reduced interest rates or cosigner release, that may be offered by your lender.
EXCEPTION: If you are billed for $0 under the Income-Based Repayment plan or are on a reduced payment forbearance, payments will not satisfy future installments.
If you satisfy a portion of a future installment, the total amount due on your next monthly bill will be the difference.
For example: If your bill is normally $150 and you are paid ahead by $50, your statement may reflect an amount due of $100
How will my payments be applied to my loan balance if I am in paid ahead status?
- When you make a payment that is more than the total amount due for all loans, the amount of the overpayment is applied across all of the loans on the billing statement.
- Regardless of your account being paid ahead or not, your over payment will be applied to your principal balance after satisfying accrued interest and late fees (if applicable). Learn more about how we apply your payments.
- For private loans, if your lender allows for paid ahead status, the overpayment will go towards satisfying a future bill. To find out if paid ahead status applies to your private loans, see your Credit Agreement or contact us.
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 1-800-233-0557.
Payment Processing Information
You have options on how your additional payments are applied. Learn how we process your payments.
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