About Payments

Your payment may be allocated and applied differently depending on whether you have a federal or private loan, the status of your loan, and if you have multiple loans that are combined into one billing or loan group.

PAYMENT ALLOCATION

Allocation is how a payment is distributed across multiple loans. When you make a payment online, you can specify which loans you would like your payment allocated toward. You can also instruct us to allocate payments differently for mailed payments. Clearly write your instructions on a separate piece of paper included with your check. We cannot process instructions written on the check or remittance slip.

Payment Application

Once we allocate a payment or a portion of a payment to a specific loan or loans, that amount is applied based on the terms of each loan's promissory note. Typically, it is applied first to Unpaid Fees, then to Unpaid Interest, and then to Unpaid Principal.

IMPORTANT REMINDER

If the payment doesn't satisfy the total payment due, including past due amounts, a late fee may be assessed (except on loans owned by the U.S. Department of Education), and the amount of interest paid over the life of a loan will increase. Past due amounts may be reported to the consumer reporting agencies.

Loans Owned by the U.S. Department of Education

Payments for Direct and FFELP Loans owned by the U.S. Department of Education

Learn how payments are allocated and applied to loans owned by the U.S. Department of Education.

First, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.

Second, the payment is applied to the Unpaid Principal.

We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

First, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily. If your payment is past due, you should anticipate that your loan will accrue more interest than when payments are made on time.

Second, the payment is applied to the Unpaid Principal.

We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

When you have multiple payments for similar loan types, we may group them together in a "Billing Group" so you will receive one consolidated statement for the loans in the Billing Group and can make one payment to cover them all.

You may request that your loans be ungrouped so that you receive separate statements by calling us at 800-722-1300.

The payment is allocated based on the Current Amount Due for each loan being paid. Unless you instruct us to do otherwise,* once the Current Amount Due has been satisfied for all loans being paid, any Overpayment will be allocated to your loan with the highest interest rate. If you have more than one loan in the Billing Group with the same highest interest rate, then the Overpayment will be allocated to any unsubsidized loan(s) being paid, prorated according to the Monthly Payment Amount. If loans with the highest interest rate are all subsidized, then the payment will be allocated to those loans prorated by the Monthly Payment Amount. If none of your loans have a Monthly Payment Amount, we'll prorate by Current Balance.

Once a portion of the payment is allocated to each loan, we apply it in the following manner:

  • First, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.
  • Second, the payment is applied to the Unpaid Principal.
  • We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

Unless you instruct us to do otherwise,* the payment will be allocated to the loans you are paying based on each loan's Past Due Amount.

Once the Past Due Amounts have been covered, the payment is then allocated based on the Current Amount Due for each loan being paid.

Unless you instruct us to do otherwise,* once the Current Amount Due has been satisfied for all loans being paid, any Overpayment will be allocated to your loan with the highest interest rate. If you have more than one loan in the Billing Group with the same highest interest rate, then the Overpayment will be allocated to any unsubsidized loan(s) being paid, prorated according to the Monthly Payment Amount. If loans with the highest interest rate are all subsidized, then the payment will be allocated to those loans prorated by the Monthly Payment Amount.

Once a portion of the payment is allocated to each loan, we apply it in the following manner:

  • First, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily. If your payment is past due, you should anticipate that your loan will accrue more interest than when payments are made on time.
  • Second, the payment is applied to the Unpaid Principal.
  • We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

How to Provide Allocation Directions for an Overpayment

For mailed payments:

You may direct how your payments are allocated among your loans by mailing your check with a separate piece of paper providing us with your allocation instructions.

For payments made online or by phone:

When you make a payment online or by phone, you can specify the amount that you pay toward each loan.

You can also pay one Overpayment amount and provide direction on how to allocate any excess funds across your selected loans.

If you choose the Direct an Overpayment option, we will apply your payment to satisfy your Current Amount Due for the selected loans and any excess funds remaining will be allocated based on the direction you provide to us.

Save Your Overpayment Allocation Direction

The Allocation Direction allows you to tell us how you would like your Overpayment allocated across your loans for payments made online or by phone that have not yet been scheduled. If you are the primary borrower, your direction will also apply to payments made by mail. (If you are not the primary borrower, please send separate, written instructions for Overpayments made by mail.)

Options for Overpayment Allocation Directions are:

To save your preferences for payments that have not yet been scheduled, log in to your account and go to your Profile to make your selection in Overpayment Directions. You may also save your preferences by speaking with an agent by phone.

View a custom allocation payment example

How to Provide Billing Directions for an Overpayment

For mailed payments:

When you make an Overpayment, you may instruct us whether you want any Overpayment to advance your next payment due date. Please include your instructions to not advance your payment due date on a separate piece of paper enclosed with your payment. Be sure to include your Account Number with your instructions.

For payments made online or by phone:

You will be able to choose whether you want any Overpayment made online or by phone to advance your next payment due date.

Save your Overpayment Billing Direction

You may also save your Overpayment Billing Direction for payments that have not yet been scheduled. This will tell us if you would like to be billed for your next full Monthly Payment Amount when you make an Overpayment online or by phone that is equal to or more than the amount of future Monthly Payments. If you are the primary borrower, your direction will also apply to payments made by mail. (If you are not the primary borrower, please send separate, written instructions for Overpayments made by mail.)

Options for Overpayment Billing Direction include:

  • Advance my due date by the number of payments I cover. Even if you have zero amount due on your billing statement, continuing to make payments will reduce your total cost of borrowing.
  • Bill me for my full Monthly Payment Amount. You will be required to make a full Monthly Payment with your next billing statement.

To save your preferences for payments that have not yet been scheduled, log in to your account and go to your Profile to make your selection in Overpayment Directions. You may also save your preferences by speaking with an agent by phone.

Federal and Private Loans Owned by Navient or Other Non-Government Lenders

Payments for FFELP, HEAL, and Private Loans owned by Navient or other non-government lenders

Learn how payments are allocated and applied.

First, the payment is applied to Unpaid Fees.

Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.

Third, the payment is applied to the Unpaid Principal.

If you have a FFELP loan in an Income-Based Repayment (IBR) plan, the payment goes first to Unpaid Interest, then to Unpaid Fees, and then to Unpaid Principal.

We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

First, the payment is applied to Unpaid Fees.

Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily. If your payment is past due, you should anticipate that your loan will accrue more interest than when payments are made on time.

Third, the payment is applied to the Unpaid Principal.

If you have a FFELP loan in an Income-Based Repayment (IBR) plan, the payment goes first to Unpaid Interest, then to Unpaid Fees, and then to Unpaid Principal.

We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

When you have multiple payments for similar loan types, we may group them together in a "Billing Group" so you will receive one consolidated statement for the loans in the Billing Group and can make one payment to cover them all.

You may request that your loans be ungrouped so that you receive separate statements by calling us at 888-272-5543.

The payment is allocated based on the Current Amount Due for each loan being paid. Unless you instruct us to do otherwise,* once the Current Amount Due has been satisfied for all loans being paid, any Overpayment will be allocated to your loan with the highest interest rate. If you have more than one loan in the Billing Group with the same highest interest rate, then the Overpayment will be allocated to any unsubsidized loan(s) being paid, prorated according to the Monthly Payment Amount. If loans with the highest interest rate are all subsidized, then the payment will be allocated to those loans prorated by the Monthly Payment Amount. If none of your loans have a Monthly Payment Amount, we’ll prorate by Current Balance.

Once a portion of the payment is allocated to each loan, we apply it in the following manner:

  • First, the payment is applied to Unpaid Fees.
  • Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.
  • Third, the payment is applied to the Unpaid Principal.
  • If you have a FFELP loan in an Income-Based Repayment (IBR) plan, the payment goes first to Unpaid Interest, then to Unpaid Fees, and then to Unpaid Principal.
  • We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

Unless you instruct us to do otherwise,* the payment will be allocated to the loans you are paying based on each loan's Past Due Amount.

Once the Past Due Amounts have been covered, the payment is then allocated based on the Current Amount Due for each loan being paid.

Unless you instruct us to do otherwise,* once the Current Amount Due has been satisfied for all loans being paid, any Overpayment will be allocated to your loan with the highest interest rate. If you have more than one loan in the Billing Group with the same highest interest rate, then the Overpayment will be allocated to any unsubsidized loan(s) being paid, prorated according to the Monthly Payment Amount. If loans with the highest interest rate are all subsidized, then the payment will be allocated to those loans prorated by the Monthly Payment Amount.

Once a portion of the payment is allocated to each loan, we apply it in the following manner:

  • First, the payment is applied to Unpaid Fees.
  • Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily. If your payment is past due, you should anticipate that your loan will accrue more interest than when payments are made on time.
  • Third, the payment is applied to the Unpaid Principal.
  • If you have a FFELP loan in an Income-Based Repayment (IBR) plan, the payment goes first to Unpaid Interest, then to Unpaid Fees, and then to Unpaid Principal.
  • We will advance your payment due date by the number of full Monthly Payments that are covered by any Overpayment – unless you instruct us to do otherwise.*

View a payment example

How to Provide Allocation Directions for an Overpayment

For mailed payments:

You may direct how your payments are allocated among your loans by mailing your check with a separate piece of paper providing us with your allocation instructions.

For payments made online or by phone:

When you make a payment online or by phone, you can specify the amount that you pay toward each loan.

You can also pay one Overpayment amount and provide direction on how to allocate any excess funds across your selected loans.

If you choose the Direct an Overpayment option, we will apply your payment to satisfy your Current Amount Due for the selected loans and any excess funds remaining will be allocated based on the direction you provide to us.

Save Your Overpayment Allocation Direction

The Allocation Direction allows you to tell us how you would like your Overpayment allocated across your loans for payments made online or by phone that have not yet been scheduled. If you are the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, your direction will also apply to payments made by mail. (If you are not the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, please send separate, written instructions for Overpayments made by mail.)

Options for Overpayment Allocation Directions are:

To save your preferences for payments that have not yet been scheduled, log in to your account and go to your Profile to make your selection in Overpayment Directions. You may also save your preferences by speaking with an agent by phone.

View a custom allocation payment example

How to Provide Billing Directions for an Overpayment

For mailed payments:

When you make an Overpayment, you may instruct us whether you want any Overpayment to advance your next payment due date. Please include your instructions to not advance your payment due date on a separate piece of paper enclosed with your payment. Be sure to include your Account Number with your instructions.

For payments made online or by phone:

You will be able to choose whether you want any Overpayment made online or by phone to advance your next payment due date.

Save Your Overpayment Billing Direction

You may also save your Overpayment Billing Direction for payments that have not yet been scheduled. This will tell us if you would like to be billed for your next full Monthly Payment Amount when you make an Overpayment online or by phone that is equal to or more than the amount of future Monthly Payments. If you are the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, your direction will also apply to payments made by mail. (If you are not the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, please send separate, written instructions for Overpayments made by mail.)

Options for Overpayment Billing Direction include:

  • Advance my due date by the number of payments I cover. Even if you have zero amount due on your billing statement, continuing to make payments will reduce your total cost of borrowing.
  • Bill me for my full Monthly Payment Amount. You will be required to make a full Monthly Payment with your next billing statement.

To save your preferences for payments that have not yet been scheduled, log in to your account and go to your Profile to make your selection in Overpayment Directions. You may also save your preferences by speaking with an agent by phone.

Private Loans PAYMENTS

Payments for Private Loans owned by Navient and other private lenders

Learn how payments are allocated and applied.

First, the payment is applied to Unpaid Fees.

Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.

Third, the payment is applied to the Unpaid Principal.

We will apply any Overpayment to next month's payment – unless you are enrolled in Auto Pay or instruct us to do otherwise.*

View a payment example

First, the payment is applied to Unpaid Fees.

Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily. If your payment is past due, you should anticipate that your loan will accrue more interest than when payments are made on time.

Third, the payment is applied to the Unpaid Principal.

We will apply any Overpayment to next month's payment – unless you are enrolled in Auto Pay or instruct us to do otherwise.*

View a payment example

When you have multiple payments for similar loan types, we may group them together in a "Loan Group" so you will receive one consolidated statement for the loans in the Loan Group and can make one payment to cover them all.

You may request that your loans be ungrouped so that you receive separate statements by calling us at 888-272-5543.

The payment is allocated based on the Current Amount Due for each loan being paid. Unless you instruct us to do otherwise,* once the Current Amount Due has been satisfied for all loans being paid, any Overpayment will be allocated to your loan with the highest interest rate. If you have more than one loan with the same highest interest rate, then the Overpayment will be prorated according to the Monthly Payment Amount. If none of your loans have a Monthly Payment Amount, we'll prorate by Current Balance.

Once a portion of the payment is allocated to each loan, we apply it in the following manner:

  • First, the payment is applied to Unpaid Fees.
  • Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.
  • Third, the payment is applied to the Unpaid Principal.
  • Any Overpayment will be allocated based on the outstanding loan balances.
  • We will apply any Overpayment to next month's payment – unless you are enrolled in Auto Pay or instruct us to do otherwise.*

View a payment example

Unless you instruct us to do otherwise,* the payment will be allocated to the loans you are paying based on each loan's Past Due Amount. Loans with the oldest delinquency will be paid first.

Once all the loans are current or at the same delinquency level, the rest of the payment is allocated based on the Current Amount Due for each loan in the Loan Group.

Unless you instruct us to do otherwise,* once the Current Amount Due has been satisfied for all loans being paid, any Overpayment will be allocated to your loan with the highest interest rate. If you have more than one loan with the same highest interest rate, then the Overpayment will be prorated according to the Monthly Payment Amount.

Once a portion of the payment is allocated to each loan, we apply it in the following manner:

  • First, the payment is applied to Unpaid Fees.
  • Second, the payment is applied to Unpaid Interest. Keep in mind interest accrues daily. If your payment is past due, you should anticipate that your loan will accrue more interest than when payments are made on time.
  • Third, the payment is applied to the Unpaid Principal.
  • Any Overpayment will be allocated based on the outstanding loan balances.

We will apply any Overpayment to next month's payment – unless you are enrolled in Auto Pay or instruct us to do otherwise.*

View a payment example

How to Provide Allocation Directions for an Overpayment

For mailed payments:

You may direct how your payments are allocated among your loans by mailing your check with a separate piece of paper providing us with your allocation instructions.

For payments made online or by phone:

When you make a payment online or by phone, you can specify the amount that you pay toward each loan.

You can also pay one Overpayment amount and provide direction on how to allocate any excess funds across your selected loans.

If you choose the Direct an Overpayment option, we will apply your payment to satisfy your Current Amount Due for the selected loans and any excess funds remaining will be allocated based on the direction you provide to us.

Save your Overpayment Allocation Direction

The Allocation Direction allows you to tell us how you would like your Overpayment allocated across your loans for payments made online or by phone that have not yet been scheduled. If you are the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, your direction will also apply to payments made by mail. (If you are not the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, please send separate, written instructions for Overpayments made by mail.)

Options for Overpayment Allocation Directions are :

To save your preferences for payments that have not yet been scheduled, log in to your account and go to your Profile to make your selection in Overpayment Directions. You may also save your preferences by speaking with an agent by phone.

View a custom allocation payment example

How to Provide Billing Directions for an Overpayment

For mailed payments:

When you make an Overpayment, you may instruct us whether you want any Overpayment to advance your next payment due date. Please include your instructions to not advance your payment due date on a separate piece of paper enclosed with your payment. Be sure to include your Account Number with your instructions.

For payments made online or by phone:

You will be able to choose whether you want any Overpayment made online or by phone to advance your next payment due date.

Save your Overpayment Billing Direction

You may also save your Overpayment Billing Direction for payments that have not yet been scheduled. This will tell us if you would like to be billed for your next full Monthly Payment Amount when you make an Overpayment online or by phone that is equal to or more than the amount of future monthly payments. If you are the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, your direction will also apply to payments made by mail. (If you are not the primary borrower or a cosigner for a loan that is not owned by the U.S. Department of Education, please send separate, written instructions for Overpayments made by mail.)

Options for Overpayment Billing Direction include:

  • Advance my due date by the number of payments I cover. Even if you have zero amount due on your billing statement, continuing to make payments will reduce your total cost of borrowing. For loans with a 16-digit account number, an Overpayment less than your next Monthly Payment Amount will reduce the amount of your next payment due.
  • Bill me for my full Monthly Payment Amount. You will be required to make a full Monthly Payment with your next billing statement.

To save your preferences for payments that have not yet been scheduled, log in to your account and go to your Profile to make your selection in Overpayment Directions. You may also save your preferences by speaking with an agent by phone.

Account Number

The primary identifier for an account at the customer level. It is a reference for all the loans associated with that customer.

Accrued Interest

Interest that has accrued during the prior Billing Cycle.

Approved Loan Amount

The original amount of funds that were approved for the customer.

Approximate Daily Interest

To find out how much interest accrues daily, use this formula: (Unpaid Principal balance x Interest Rate) ÷ Number of Days in the Year = Approximate Daily Interest.

Approximate Interest Due

Approximate Daily Interest x number of days in your billing period = Approximate Interest Due.

Balance

The amount of debt still owed on an account.

Billing Cycle

The period of time between the generation of billing statements. The Billing Cycle's start and end dates may or may not be the same as the Billing Period's start and end dates.

Billing Group

One or more loans that are combined in a grouping to allow customers to receive a single billing device and make a single payment for the respective loan(s).

Billing Period

The interval of time during which bills are prepared. The Billing Period start and end dates may not be the same as the Billing Cycle start and end dates.

Capitalized Interest

Accrued interest that has been added to the Unpaid Principal balance. Since the interest that is capitalized gets added to the principal, the customer will accrue interest on a higher balance.

Current Amount Due

The Monthly Payment Amount or the remainder of the Monthly Payment Amount if an overpayment was received in a previous Billing Cycle.

Current Balance

Unpaid Principal + Unpaid Interest + Unpaid Fees, if applicable.

Disbursement Date

The date when the Approved Loan Amount was paid to the borrower or school.

Disbursement Fee

A fee charged to the customer for the loan being disbursed. This is added to the loan amount at disbursement and is based on the borrower's or cosigner's credit history. Also known as an Up-Front or Front-End Fee.

Disbursed Principal

Original Principal less fees charged at time of loan origination.

Fees Assessed

The sum of the charges assigned in the prior Billing Cycle.

Last Payment Effective Date

The date the most recent payment was credited to the account within the last billing period.

Late Fee

A charge that is assessed if your payment is not made by the date presented on your billing statement to avoid such fee.

Loan Group

One or more loans that are combined in a grouping to allow customers to receive a single billing device and make a single payment for the respective loan(s).

Loan Group Number

The numeric identifier utilized to distinguish a Loan/Billing Group.

Loan ID

The numeric identifier utilized to distinguish an individual loan.

Loan's Outstanding Balance

Current Balance less the amount of an overpayment that has already satisfied the Past Due Amount and Current Amount Due (if applicable).

Monthly Payment Amount

The amount required each month to repay the loan according to the repayment schedule.

Monthly Payment

The amount required each month to repay the loan according to the repayment schedule.

Original Principal

The original approved loan amount.

Other Fees

A charge or charges assessed based on qualifying conditions that are disclosed on the promissory note.

Overpayment

The portion of a payment received in excess of the Past Due Amount + Current Amount Due + Unpaid Fees.

Past Due Amount

The remainder of monthly payment amounts from previous Billing Cycles that have not been satisfied by the customer (this does not include fees).

Previous Statement Balance

The prior month's billing statement's "Current Balance".

Principal Reduction

The amount of funds that have reduced the Unpaid Principal in the prior Billing Cycles.

Repayment Fee

A fee charged to the customer for entering repayment. It is a percentage of the principal balance after Unpaid Interest has been capitalized. Also known as a Back End Premium Fee.

Returned Check Fee

A charge that is assessed when a payment does not clear the bank for any reason, including insufficient funds, missing signature, or account closure.

Total Payment Due

Past Due Amount + Current Amount Due + Unpaid Fees. This is the amount the customer needs to pay in order to complete their repayment schedule by the projected date (by paying the fees, the remainder of the payment is the amount needed to satisfy the interest and/or principal- expected in the repayment schedule).

Underpayment

A payment received that is insufficient to cover the Past Due Amount + Current Amount Due.

Unpaid Fees

Fees that were assessed to the customer in the past and have not been satisfied (this amount is NOT a factor in payment allocation).

Unpaid Interest

Overall interest that has accrued that has not yet been satisfied by the customer.

Unpaid Principal

The Original Principal (the original loan amount borrowed by the customer), less any prior reductions to the Original Principal, plus any interest that has been capitalized.


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