Payment Allocation

Allocation is how a payment is distributed across multiple loans. You can instruct us to allocate payments differently. 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.

Overpayment

A payment received in excess of the Past Due Amount + Current Amount Due.

REMEMBER

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.

 
 

Private Loan Payments

Payments for Private Loans owned by third-party lenders

Learn how payments are allocated and applied to unpaid interest, current principal, and any unpaid fees, if applicable.


Single Loan – Your Account is Current

  • First, any unpaid fees are paid.
  • Second, any unpaid interest is paid.
  • Third, the payment is applied to the current principal.
  • We will apply any overpayment to next month's payment — unless you are enrolled in automatic debit or instruct us to do otherwise.*
  • View a payment example

Single Loan – Your Account is Past Due

  • First, any unpaid fees are paid.
  • Second, any unpaid interest is paid. Interest continues to accrue on your account daily. If your payment is past due, more of it will be applied to the interest that has accrued.
  • Third, the payment is applied to the current principal.
  • We will apply any overpayment to next month's payment — unless you are enrolled in automatic debit or instruct us to do otherwise.*
  • View a payment example

Multiple Loans in a Group – Your Account is Current

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 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 in a loan group — unless your payment is mailed with a separate piece of paper instructing us to do otherwise.
    • First, any unpaid fees are paid.
    • Second, any unpaid interest is paid.
    • Third, the payment is applied to the current 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 automatic debit or instruct us to do otherwise.*
  • View a payment example

Multiple Loans in a Group – Your Account is Past Due

  • Unless the monthly payment is mailed with a separate piece of paper instructing us to do otherwise, the payment first will be allocated based on each loan's delinquent 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.
  • Once a portion of the payment is allocated to each loan, we apply it in the following manner:
    • First, any unpaid fees are paid.
    • Second, any unpaid interest is paid. Interest continues to accrue on your account daily. If your payment is past due, more of it will be applied to the interest that has accrued.
    • Third, the payment is applied to the current 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 automatic debit or instruct us to do otherwise.*
  • View a payment example

Request Special Payment Allocations

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.



*How to Send Overpayment Application Instructions

  • By check: Enclose your instructions for each loan, along with your loan IDs, on a separate piece of paper included with your check.