The amount of your payment in relation to the amount due affects future payments.
Overpayment (Paying more than the amount due)
You may pay more than your minimum monthly payment on your Aspire Servicing Center account at any time without penalty. Paying more than the minimum monthly payment amount or making extra monthly payments may save you money on interest.
Unless you direct otherwise, your overpayment will be applied to the loan with the highest interest rate. If more than one loan has the same highest interest rate, the overpayment will be applied proportionately to any unsubsidized federal loans and any private education loans. If you do not have unsubsidized federal loans or private loans, the overpayment will be allocated proportionately across subsidized federal loans. You may choose to allocate your payments in a different manner.
Underpayment (Paying less than the amount due)
If you are not able to pay the full amount due each month and make only a partial payment, the remaining amount will be considered past due and added to the amount due for the next billing period. If your account has multiple loans, you can give us special instructions to allocate partial payments to individual loans within your account. Doing so may allow you to avoid late charges or negative credit reporting on those individual loans. Unless you allocate your payments in a different manner, partial payments will be allocated from the most delinquent to least delinquent.
After satisfying as many full bills as possible, any remaining funds will be allocated to any loans that will be reported as delinquent to the national consumer reporting agencies first. If all loans have the same delinquency, then funds will be allocated to any loans that may accrue late fees. If no late fees are accruing, then the remaining funds will be posted to the loan with the least amount due to satisfy the monthly payment.
If loans have the same total amount due and the same interest rate, the payment will be allocated to any unsubsidized federal student loans or private education loans, starting with the loans with the highest balance. If the balance on the loans is the same, the payment will satisfy the loan with the oldest first disbursement date. If there are no unsubsidized federal loans or private student loans, the payments will be allocated to the subsidized federal loans in the same manner.
Making no payment or skipping a payment
If you don't make a payment, your next billing statement will reflect the past due amount along with the current payment amount.
If you are unable to make your monthly payment, you may be able to delay a payment.
Aspire Servicing Center reports all borrower accounts to the national consumer reporting agencies every month and may report late or missing payments at 30 days or more past due. Even if you later bring your account current through payment or assistance, or even pay your account in full, that does not change previous, accurate credit reporting.
In addition, if you make partial payments, miss payments or pay late, more daily interest accrues on your account and you may incur late charges. Greater portions of your subsequent payments will apply to outstanding interest and late charges and less to principal. Over time, partial, missing or late payments can increase your loan balance through capitalization of accrued interest.