Where to send your student loan payment

Your payment goes to your loan servicer, not to the Department of Education. The servicer is the company that manages your loan on a day-to-day basis — they send you statements, process payments, and handle questions about your account. You will have received paperwork or an email telling you which servicer handles your loan.

If you are unsure which servicer you have, log into studentaid.gov and sign in with your Federal Student Aid ID. Your dashboard will list every federal loan you have and which servicer manages each one. If you have private student loans (not federal), contact the bank or lender that issued them directly.

Most servicers let you pay online through their website, by phone, or by mail. Some also accept automatic monthly transfers from your bank account. The method you choose does not change where the money goes — it all reaches your servicer's account.

Key Takeaways

  • Your loan servicer is the company that collects your payments, and you can find out which one you have by logging into studentaid.gov.
  • You can pay online, by phone, by mail, or through automatic bank transfers, depending on what your servicer offers.
  • Your monthly payment amount depends on your repayment plan — income-driven plans are lower than standard ten-year plans.
  • If you cannot afford your payment, you can pause payments through deferment or forbearance, or switch to a lower repayment plan.
  • Payments made during a pause period (like the federal pause that ended in 2023) may not count toward forgiveness programs, so confirm with your servicer before paying.

How much you owe each month

Your monthly payment depends on which repayment plan you are on. The standard plan charges a fixed amount over ten years. Income-driven plans (Income-Based Repayment, Pay As You Earn, Revised Pay As You Earn, and Income-Contingent Repayment) calculate your payment as a percentage of your discretionary income, which means lower payments if your income is modest or if you have dependents.

You can see your current payment amount and repayment plan on your servicer's website or in your loan statement. If you want to switch plans, you can request a change through your servicer at any time — there is no fee. Switching to an income-driven plan usually lowers your payment but extends the time you pay and increases the total interest you pay over the life of the loan.

Your servicer will tell you the exact due date each month. Most servicers allow a grace period of a few days after the due date before charging a late fee, but you should not rely on this — paying on time protects your credit score.

Setting up automatic payments

Most servicers offer a small interest rate reduction — typically 0.25 percent — if you set up automatic monthly transfers from your bank account. This is called autopay or automatic debit. To enroll, log into your servicer's website, go to the payment settings section, and enter your bank account and routing number.

Autopay withdraws your payment on the same day each month, usually around the due date. You can change or cancel autopay at any time through your servicer's website. If you are worried about having enough money in your account on payment day, you can set the withdrawal date to a few days after you normally get paid.

Autopay is optional, but it removes the risk of forgetting a payment and damaging your credit. It also ensures you get the interest rate reduction if your servicer offers one.

What happens if you miss a payment

A payment is considered late if it arrives after your due date. Most servicers charge a late fee on the first missed payment, usually between $15 and $25. If you miss a payment by more than 90 days, the servicer will report the delinquency to the credit bureaus, which will lower your credit score.

If you miss a payment by 270 days (about nine months), your loan enters default. Once in default, the entire remaining balance becomes due when ready, and the servicer can begin collection efforts. Defaulted federal loans can trigger wage garnishment or the withholding of tax refunds.

If you know you cannot make a payment, contact your servicer before the due date. They can discuss deferment, forbearance, or a plan change rather than letting you fall behind.

Pausing payments through deferment or forbearance

Deferment and forbearance are both ways to pause your loan payments temporarily without going into default. The difference is in how interest is handled and who qualifies.

Deferment is usually available if you are in school, unemployed, or facing economic hardship. During deferment on subsidized loans, the government pays the interest for you. During deferment on unsubsidized loans, interest still accrues but you do not have to pay it right away.

Forbearance is available to almost anyone who cannot pay, regardless of the reason. During forbearance, interest accrues on all loans. You request forbearance through your servicer, and they can grant it for up to three years total, though usually in shorter periods.

Both deferment and forbearance pause your payment obligation, but neither erases the debt. Interest continues to build on unsubsidized loans in both cases. If you are pursuing loan forgiveness (such as Public Service Loan Forgiveness), confirm with your servicer whether months in deferment or forbearance count toward your forgiveness timeline.

Income-driven repayment plans and payment calculations

If you are on an income-driven plan, your payment is recalculated once a year based on your most recent tax return. You must recertify your income each year, usually by logging into your servicer's website and answering questions about your household size and income. If you do not recertify, your servicer will move you to the standard ten-year plan, which is usually much higher.

Income-driven plans calculate your payment as 10 to 20 percent of your discretionary income, depending on the plan. Discretionary income is the difference between your adjusted gross income and 150 to 225 percent of the federal poverty line for your household size (the exact percentage depends on the plan). If your income is below the poverty line, your payment can be as low as $0.

Even if your payment is $0, you should continue to make payments if you can. Any payment you make reduces the principal balance and lowers the total interest you pay. After 20 to 25 years of payments on an income-driven plan, any remaining balance is forgiven, though you may owe income tax on the forgiven amount.

Making extra payments or paying in full

You can pay more than your monthly minimum at any time without penalty. Extra payments go directly to your principal balance, which reduces the total interest you pay and shortens your repayment timeline. Some borrowers pay a lump sum when they receive a tax refund or bonus, while others add $50 or $100 to their regular payment each month.

When you make an extra payment, specify that it should go toward principal, not toward future payments. Some servicers will automatically explore extra money to future months instead of reducing your balance. Check your servicer's website or call to confirm how they handle overpayments.

If you want to pay off your loan in full, contact your servicer and ask for a payoff amount. This is the exact balance you owe on that specific day, including any accrued interest. Once you submit the payoff amount, your loan is closed and you receive a confirmation letter.

Frequently Asked Questions

Can I pay my student loan early without a penalty?

Yes. Federal student loans have no prepayment penalty, so you can pay any amount at any time without extra fees. Private loans vary — check your promissory note or contact your lender to confirm. Paying early reduces your interest and shortens your repayment timeline.

What if I have multiple student loans from different servicers?

You will need to log into each servicer's website separately to make payments. Some banks and payment platforms let you set up a single bill-pay account that sends money to multiple servicers, which can simplify tracking. Your servicer's website will show you only the loans they manage.

Do payments made during the federal student loan pause count toward forgiveness?

The federal pause on student loan payments ended in October 2023. Payments made during the pause period (March 2020 through September 2023) were counted as on-time payments for credit reporting purposes, but they did not count toward Public Service Loan Forgiveness or income-driven repayment forgiveness timelines. Confirm with your servicer if you made payments during that period.

What if my payment is due but I do not have the money?

Contact your servicer when ready. You can request deferment, forbearance, or a switch to a lower repayment plan. These options pause or reduce your payment without triggering a late fee or credit damage. Waiting until after the due date makes it harder to avoid penalties.

How do I know if my payment was received?

Log into your servicer's website and check your account history, which shows all payments received and their dates. You should also receive a payment confirmation email or statement. If you paid by mail, allow 7 to 10 business days for the payment to post to your account.