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Payment Processing Information

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, but it may take a few days for processing 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

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.

Payments are applied to loans in one of two ways:

  • Accrued interest > Late fee (if applicable) > Current principal balance
  • Late fee (if applicable) > Accrued interest > Current principal balance

The order of application is generally set by the terms of your loan agreement, but may also be based on your repayment plan. You may sign in to Account Access to review your loan types and repayment plans.

NOTE: When a Federal Family Education Loan Program (FFELP) loan is on an Income-Based Repayment (IBR) plan, the payment is applied first to accrued interest, then to late fees (if applicable), and then to the current principal balance.

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 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.

Overpayments and Underpayments

You may pay more or less than the amount due on your loans at any time and may choose to specify payment amounts to each loan. See Paying Specific Loans below for information regarding instructions for individual payments and future payments.

Overpayments – Paying More than the Total Due for All Loans

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 do not provide instructions for your additional amount (see Paying Specific Loans below), it will be allocated proportionately across your loans based on the monthly amount due for each loan, excluding any loans on an Income Based Repayment plan with a $0 payment. This may cause your loans to be in a paid ahead status.

For residents of NY and CA: If you do not specify how you want an overpayment to be allocated to your loans (see Paying Specific Loans below), it will go to the loan with the highest interest rate. If more than one loan has the same highest interest rate, the overpayment will go first to any unsubsidized or private education loan, proportionately across the loans based on the monthly amount due for each loan. If there are no unsubsidized loans, the overpayment will be allocated proportionately across the subsidized loans based on the monthly amount due for each loan.

Underpayments – Paying Less than the Total Due for All Loans

If you do not provide instructions for your payment that is less than the Total Due for all loans (see Paying Specific Loans below), 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 allocated proportionately based on the monthly amount due for each loan.

NOTE: This will result in multiple loans being delinquent. You may review the status of your loans in Account Access to determine whether to provide instructions for subsequent payments (see Paying Specific Loans below). If you do not fully satisfy the Total Due by the due date, your loans will be past due, which may result in late fees, negative credit reporting, and/or loss of eligibility for borrower benefits based on loan owner requirements. If you can’t afford to make a payment or your account is already past due, we may be able to help you!

For residents of CA, CO, MA, ME, MN, NJ, NY, RI, and VA: In the absence of instructions (see Paying Specific Loans below), your payment will be allocated to satisfy individual loans in order to minimize negative credit reporting and late fees. Any amount remaining is allocated in the order of most delinquent to least delinquent. If the loans have the same level of delinquency, the payment will be allocated to satisfy the loans in the order of lowest amount to highest amount remaining due. If the total due on the loans is the same, the payment will be allocated to the loan with the highest interest rate.

If the loans have the same total due and the same interest rate, the payment will be allocated to any unsubsidized or private education loan, starting with the loans with the highest balance. If the balance on the loans is the same, the payment will satisfy the loan with the oldest first disbursement date. If there are no unsubsidized loans the payment will be allocated to the subsidized loans following this same process.

NOTE: This may cause some loans to be current while others are delinquent. You may review the status of your loans in Account Access to determine whether to provide instructions for subsequent payments (see Paying Specific Loans below).

Paying Specific Loans

When you pay more or less than the amount due on your loans, you may choose to specify payment amounts to each loan. The easiest way to make payments on specific loans is to pay online using Account Access or our mobile application. When you make payments in this manner, we will ask you to confirm or provide your instructions for allocating any overpayment or underpayment to specific loans. When you make a payment over the phone using our interactive voice response system, we will also ask you to confirm your instructions for allocating any overpayment or underpayment, or you may choose to speak to a representative to provide alternate instructions.

If you sign up for Direct Debit, you may also specify additional amounts to your individual loans. You can modify this Direct Debit selection at any time through Account Access. If you need help making payments on specific loans, you can also call us for assistance and a representative will be happy to guide you through the process.

NOTE: Instructions can also be provided for one-time and future payments by following the instructions below under Ways to Provide Instructions and What to Include in Payment Instructions. Because you are asked to confirm or provide instructions for one-time payments made online, using the mobile application, or over the phone, it is not necessary to provide separate or standing instructions for such payments.

Ways to Provide Instructions

Standing instructions must be provided in writing. You may call us to provide instructions for one-time payments. To send us your standing instructions in writing, use one of these methods:

Contact Method Contact Details
By email

Sign in to Account Access and use the Contact Us link to send us your instructions through a secure message.

By mail

Send your written instructions to us at our correspondence address:
American Education Services
P.O. Box 2461
Harrisburg, PA 17105-2461

Please send your instructions separately from any payment, check, or money order to ensure your payments apply correctly as you are requesting. Do not write instructions directly on your check, money order, or bill stub so that it isn’t missed when we process your payment!

By fax

Fax standing instructions to 717-720-3916.

What to Include in Payment Instructions

Include the following information when providing payment instructions:

  • Your account number.
  • Identification of the applicable loans using the disbursement date and loan type which you can find in Account Access or on your bill.
  • Specific details on how to allocate your payment to specific loans. If your instructions are not clear, we will contact you. We cannot honor requests to modify the manner in which payments are applied, as this is governed by the terms of your loan agreement or your repayment plan (see Payment Application section above).

If you need help with this process, please contact us. You can also see an example of what you may want to include with your request by reviewing the Consumer Financial Protection Bureau's sample letter (DOC) about providing such instructions.

Modifications to Prior Payments

You may contact us if you would like to request a change to the manner in which a prior payment was allocated to your multiple loans.

Payment Examples

These examples are based on a single billing statement that includes two loans, with a monthly Total Due of $180.00.

Principal Balance Accrued Interest Amount Due

Loan 1

Loan 2

Total

$2,100.00

$3,000.00

$5,100.00

$6.50

$10.00

$16.50

$75.00

$105.00

$180.00

Payment on Current Account

Payment of the Total Amount Due on Loans that are Current

If the loans are current and you pay the Total Due, the payment will be applied as follows:

Loan 1 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$6.50

- $6.50

$2,100.00

- $68.50

$2,031.50

Loan 2 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$10.00

- $10.00

$3,000.00

- $95.00

$2,905.00

Overpayment above Total Due on Current Account

If the Monthly Total Due on the loans is $180.00 and you make a payment of $325.00 without providing instructions for the additional amount, this is how the payment will be allocated, unless you are a resident of CA or NY (see Overpayments above):

Monthly Total Due Past Due Total Due Payment
$180.00 $0.00 $180.00 $325.00
Loan 1 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$6.50

- $6.50

$2,100.00

- $128.92

$1,971.08

Loan 2 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$10.00

- $10.00

$3,000.00

- $179.58

$2,820.42

Overpayment above Total Due on Past Due Account

If the Monthly Total Due on the loans is $180.00, the loans are past due in the amount of $120, and you make a payment of $395.00 without providing instructions, this is how the payment will be allocated, unless you are a resident of CA or NY (see Overpayments above):

Monthly Total Due Past Due Total Due Payment
$180.00 $120.00 $300.00 $395.00

If interest is satisfied first based on loan owner/repayment plan requirements:

Loan 1 Accrued Interest Late Fee Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$8.67

- $8.67

$4.00

- $4.00

$2,100.00

- $151.91

$1,948.09

Loan 2 Accrued Interest Late Fee Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$13.33

- $13.33

$6.00

- $6.00

$3,000.00

- $211.09

$2,788.91

If late fees are satisfied first based on loan owner/repayment plan requirements:

Loan 1 Late Fee Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$4.00

- $4.00

$8.67

- $8.67

$2,100.00

- $151.91

$1,948.09

Loan 2 Late Fee Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$6.00

- $6.00

$13.33

- $13.33

$3,000.00

- $211.09

$2,788.91

If there are no late fees:

Loan 1 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$8.67

- $8.67

$2,100.00

- $155.91

$1,944.09

Loan 2 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$13.33

- $13.33

$3,000.00

- $217.09

$2,782.91

Underpayment on Current Account

If the Monthly Total Due on the loans is $180.00 and you pay $155.00 without providing instructions, the payment will not be sufficient to satisfy the Total Due and this is how the payment will be allocated, unless you are a resident of CO, ME, NJ, NY, RI, CA, or VA (see Underpayments above):

Monthly Total Due Current Past Due Total Due Payment Next Month's Total Due
$180.00 $0.00 $180.00 $155.00 $205.00
Loan 1 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$6.50

- $6.50

$2,100.00

- $58.08

$2,041.92

Loan 2 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$10.00

- $10.00

$3,000.00

- $80.42

$2,919.58

Partial Payment on Past Due Account

If the Monthly Total Due on the loans is $180.00, the loans are past due in the amount of $120, and you make a payment of $205.00, once all past due amounts are satisfied, this is how the payment will be allocated unless you are a resident of CO, ME, NJ, NY, RI, CA, or VA (see Underpayments above):

Monthly Total Due Current Past Due Total Due Payment Next Month's Total Due
$180.00 $120.00 $300.00 $205.00 $275.00
Loan 1 Accrued Interest Late Fees Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$8.67

- $8.67

$4.00

- $4.00

$2,100.00

- $72.75

$2,027.25

Loan 2 Accrued Interest Late Fees Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$13.33

- $13.33

$6.00

- $6.00

$3,000.00

- $100.25

$2,899.75

If late fees are satisfied first based on loan owner/repayment plan requirements:

Loan 1 Unpaid Late Fee Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$4.00

- $4.00

$6.50

- $6.50

$2,100.00

- $72.75

$2,027.25

Loan 2 Unpaid Late Fee Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$6.00

- $6.00

$10.00

- $10.00

$3,000.00

- $100.25

$2,899.75

If there are no late fees:

Loan 1 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$8.67

- $8.67

$2,100.00

- $72.75

$2,027.25

Loan 2 Accrued Interest Principal Balance

Beginning Balance

Amount Allocated

Ending Balance

$13.33

- $13.33

$3,000.00

- $100.25

$2,899.75

Debt Management

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