Learn How Payments are Allocated and Applied
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, including any Overpayment you might make.
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, 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.
Payment Posting
Your payment will be credited effective as of the scheduled electronic payment date or the date the mailed payment was received.
-
Online payments made by 11:59 PM ET will be credited effective as of the current date - including weekends and banking holidays.
-
If you're enrolled in Auto Pay, your payment will be effective on your due date.
-
Please allow time for mailing and keep in mind that mailed payments are only processed on business days.
-
Please allow at least 2 business days for processing, from the scheduled date for electronic payments or the date delivered for mailed
payments.
Log in and go to your Account History to view your complete payment history.
Payment Glossary
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
Also known as a non-sufficient funds fee (NSF), a fee may be assessed when payment is returned due to insufficient funds.
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.
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.