If your employer has elected to offer Student Loan Repayment as a benefit, and once you have completed the loan verification process to begin receiving your employer's contributions, you may wish to have those contributions applied to one of multiple loans (especially if one has a higher interest rate).
While we can be helpful in this process, the decision of how to apply payments (also called payment targeting) is fully in the hands of your loan servicer. The good news here is that the Consumer Finance Protection Bureau (CFPB) has advised student loan servicers that they should apply payments based on the wishes of borrowers (that’s you!) and have provided a letter template that borrowers like yourself can mail to the loan servicer with standing instructions for the application of payments.
You can download the template for the CFPB’s letter here. Simply follow the instructions, fill in the letter and mail it to your loan servicer.
Additionally, here are some helpful links on how the most common loan servicers apply payments:
Nelnet
Navient
FedLoan
Great Lakes
While we can be helpful in this process, the decision of how to apply payments (also called payment targeting) is fully in the hands of your loan servicer. The good news here is that the Consumer Finance Protection Bureau (CFPB) has advised student loan servicers that they should apply payments based on the wishes of borrowers (that’s you!) and have provided a letter template that borrowers like yourself can mail to the loan servicer with standing instructions for the application of payments.
You can download the template for the CFPB’s letter here. Simply follow the instructions, fill in the letter and mail it to your loan servicer.
Additionally, here are some helpful links on how the most common loan servicers apply payments:
Nelnet
Navient
FedLoan
Great Lakes
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