If you pay your current amount due

Unless you specify otherwise, the default allocation on payments is as follows. Note most borrowers do not have any fees on their account in which case payments would be first applied to outstanding account interest. Payments including specific instructions may override the below and will be applied according to those instructions. However, please note we are not able to process requests to advance payments. If a statement coupon is included with a payment, payments will be applied to only loans listed on the coupon. Otherwise, the payment will be applied to all of the borrower's loans due. 

 

Payment_Allocation.jpg

 

If you pay more than the amount due

  • Payments received with specific instructions from the borrower will follow those instructions (such as applying extra towards one loan)
  • Overpayments made prior to due dates are prorated across all loans
  • Overpayments made on or after the due date will be applied to highest interest rate loan first, or oldest loan if all loans bear the same rate

If you pay less than the amount due

  • When a partial payment is received on current loans, payments are applied to loans with the same due date by highest interest rate loan first, or oldest loan if all loans bear the same rate.
  • If the loans have different due dates, the partial payment would be applied first to the loan with the nearest due date.  
  • If you make a partial payment on past due loans, the payment will be applied first to the most past due loan or the highest interest rate loan if all outstanding installments are the same age, or the oldest account if all loans bear the same interest rate and have the same due date.