There is no penalty for the prepayment of federal or private education loans. However, myfedloan if you want to be strategic in paying for your loan, you need to know how your loan manager will apply your additional payments.
For example, if you do not specify that FedLoan Servicing should make additional payments for a particular loan, you may be able to allocate part of that amount to each of the student loans you manage. The best options may be the total overpayment for the highest interest rate loan (to save the most money) or the lowest balance (to help you terminate one of your loans early).
You can send an email, email or fax to FedLoan Service. You will receive instructions on how to process all your overpayments. You can also schedule a payment online at MyFedLoan and request a specific loan with your payment.
Please note that you may receive the prepaid status for non-targeted additional payments. This can happen because FedLoan Servicing can apply your payments to a future bill instead of paying the current balance of the debt. In this case, your future bill may be reduced by the amount you paid in advance.
Even if you have paid the state in advance, your direct debit payments will continue as usual. For example, if you’re set to run a $ 300 monthly direct debit and receive an additional $ 300 unmanaged payment this month, you may not be required to spend the next month. However, your direct debit of $ 300 will continue to be paid next month as if you had not paid in advance.
Contacting FedLoan Service
FedLoan Servicing has a contact page that lists the borrower’s frequently asked questions and the answers. However, if you contact a representative for assistance, you can:
Call 1-800-699-2908 (or 717-720-1985 for international calls). The call center is open Mondays to Fridays from 8am to 9pm Eastern time.
Sign in to your account and send a secure email.
You can fax the forms to 717-720-1628