How Payments Are Applied
Select from the options below to see answers to common questions about how payments are applied to student loan accounts.
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How do I pay off my loans?
You may pay your loans in full at any time without penalty. If you would like to pay one or more loans in full, please call (800) 243-7552 or log in to your online account for an accurate payoff amount.
Note: The loan balance listed on a billing statement is not a valid payoff amount because it does not include daily interest accrued since the bill was created. Insufficient payoff amounts may be returned to you.
After obtaining your payoff amount, send payment in full to:
Special Handling
Aspire Servicing Center
Attn: Payment Processing Supervisor
6805 Vista Drive
West Des Moines, IA 50266-9307
How is each payment applied to multiple loans in my account?
Payments received with a bill stub will be applied to loans listed on that billing statement.
Payments received without a bill stub will be applied proportionately to all loans in your account.
To allocate your payments in a different manner, see the answer to How do I allocate payments differently?on this page.
How much of each payment is applied to late charges, interest and principal?
Interest accrues daily, and your payment is first applied to either outstanding interest or late charges, as shown below. Any remainder after interest and late charges are paid is applied to principal.
Income-Based Repayment Plan
- Outstanding interest
- Late charges
- Principal
All Other Repayment Plans
- Late charges
- Outstanding interest
- Principal
More about late charges
Late charges may be assessed when a payment is not received by the due date. The amount of the charge and the day it is assessed depends on loan type.
More about outstanding interest
Any outstanding interest that has accrued must be paid before any amount is applied to principal.
View example under "How is interest calculated on student loans?" in Frequently Asked Questions.
What determines the effective and applied dates of my payments?
A payment may be applied — reflected on your account transactional history and viewed through your online account — one to two business days after it is received but it will be treated as effective according to the guidelines below.
If you pay by: |
Your payment will be effective: |
Your payment will be applied: |
Mail, in person or drop-off |
The date the payment is received in our office, regardless of postmark date. We don't accept postdated checks. |
The following business day for payments received by 2 p.m. (Central time). In two business days for payments received after 2 p.m. (Central time). |
Bill pay service |
The effective date listed in the electronic file provided by the bill pay provider for electronic payments. The date a check payment is received in our office, regardless of postmark date. We don't accept postdated checks. |
The following business day. |
Online account access |
The date (same day or future date) you choose when scheduling a payment online. Online payments cannot be made effective for a Saturday or Sunday. |
The following business day for payments made midnight–2 p.m. (Central time) Monday–Friday. In two business days for payments made after 2 p.m. and before 11:59 p.m. (Central time) Monday–Friday. |
Phone |
The date you choose (same day or future date) when scheduling your payment either with a customer service representative or through the automated phone payment system. |
The following business day for:
- Debit card payments made through a representative 8 a.m.–3:15 p.m. (Central time).
- Payments from a checking or savings account made through a representative 8 a.m.–2 p.m. (Central time).
- Payments made through the automated phone payment system prior to 3:15 p.m. (Central time).
In two business days for:
- Debit card payments made through a representative after 3:15 p.m. (Central time).
- Payments from a checking or savings account made through a representative after 2 p.m. (Central time).
- Payments made through the automated phone payment system at or after 3:15 p.m. (Central time).
|
Auto-debit |
Your due date. |
The next business day following your due date. |
What happens when I make early or late payments?
The frequency of your payments can affect the amount of interest that accrues on your student loans. Student loans accrue interest on a daily basis. If more days pass between payments, more interest accrues and less of your payment is applied to principal.
Making payments before the due date
If your previous payment was received on your due date, and the next month's payment is received prior to the due date, less daily interest will have accrued than if you had waited until your due date to make the payment.
If you consistently make your payments fewer than 30 days apart, your account may pay off earlier than the final payoff date or maturity date, and you may pay less in overall interest.
Making payments on the due date
When your payments are effective on your due date every month, your loan will be paid in full by the end of its term. For more information, see the answer to What determines the effective and applied dates of my payments? on this page.
Making payments after the due date
If your previous payment was received on your due date, and the next month's payment is received after the due date, more daily interest would have accrued than if you had made your payment on your due date.
Billing statements are created approximately 20 days before your next due date. If you make a late payment after your next statement is created, that statement will not reflect your recent payment.
If you continually make payments late and pay more interest than your repayment plan originally set forth, your monthly payment amount may increase so that your loan pays off within the term of the loan.
What happens if I pay more or less than the amount due?
The amount of your payment in relation to the amount due affects future payments.
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. For more information, see the answer to Can I make extra payments? on this page.
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 (see the answer to How do I allocate payments differently? on this page), partial payments will be allocated proportionally to multiple loans in your account, which may result in late charges or negative credit reporting for each loan. For more information, see also the answer to How is each payment applied to multiple loans in my account? on this page.
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.
Can I make extra payments?
You may pay more than your minimum monthly payment at any time without penalty. See more information in the answer to What is paid ahead? on this page.
Sending an additional amount along with my required monthly payment
When you send an additional amount along with your required monthly payment, the additional amount will apply to principal as long as all outstanding interest and late charges have been satisfied.
Sending an additional amount separate from the required monthly payment
When you send an additional payment separate from your required monthly payment amount, your payment will apply to interest accrued from the date of your most recent payment, any late charges and then to your principal balance proportionately across all loans unless you request to allocate the payment differently. (See the answer to How do I allocate payments differently? on this page.)
What is paid ahead?
Accounts are set up so that when you pay more than the required monthly payment, extra funds satisfy or pay a portion of one or more future bills, resulting in your account being paid ahead.
Note: Interest continues to accrue on student loans every day, even if your billing statement shows $0.00 or a reduced amount due. Continuing to make payments that at least cover interest will ensure that more of your next payment is applied to principal.
Satisfying one or more future bills
If you have satisfied the entire amount of a future bill, your billing statement will reflect a $0.00 amount due, but it does not mean that the interest has stopped accruing. If you choose to not make a payment while paid ahead, your loan will not be considered past due, but the next payment you make will first be applied to the outstanding interest that has accrued since the last time you paid and then any remaining amount will be applied to the principal balance.
Satisfying a portion of a future bill
If you satisfy only a portion of a future bill, your billing statement will reflect a reduced amount due, but it does not mean that the interest has stopped accruing. If you choose to make a reduced payment while paid ahead, your loan will not be considered past due, but the next payment you make will first be applied to the outstanding interest that has accrued since the last time you paid and then any remaining amount will be applied to the principal balance.
Removing the paid ahead status from your account
If you prefer to have your billing statement reflect the monthly installment due and not be applied to future bills, please contact us or use the "Other" field on the Future Payment Allocation Form (PDF) to request the paid ahead status be removed from your account.
How do I allocate payments differently?
Without special instructions, payments are allocated to multiple loans in your account. See the answer to How is each payment applied to multiple loans in my account? on this page. You may allocate payments as you choose, but please consider paying at least the minimum monthly amount due for each loan to avoid delinquency.
You may allocate a one-time payment differently or you may provide allocation instructions for all future payments. You may use the Future Payment Allocation Form (PDF) to allocate all future payments.
Note: Regardless of any special handling instructions, all outstanding interest on the affected loans must be satisfied before funds may be applied to principal.
If you pay by: |
Then make a one-time payment allocation by: |
Then allocate all future payments by: |
Mail, walk-in or drop box |
Including one-time special payment handling instructions with your current mailed payment. |
Either
- Providing payment instructions on a separate paper along with your payment, or by uploading or fax. Be sure to include your account number.
- Returning the Future Payment Allocation Form (PDF) with your payment.
|
Bill pay service |
Providing one-time special handling instructions to us by uploading, fax or mail. Be sure to include your account number.
Note: Bill pay payments are automatically applied to your account. The payment will be reapplied per your instructions after it has been applied.
|
Providing payment instructions to us separate from your payment. Be sure to include your account number. You may use the Future Payment Allocation Form (PDF).
Note: Bill pay payments are automatically applied to your account. Each payment will be reapplied per your instructions after it has been applied.
|
Web payment |
Designating the way you would like a one-time payment to be applied to your account when you set up your payment. |
Designating the way you would like your scheduled payment allocated when you set up your payment. |
Phone |
Either
- Designating the way you would like your current payment to be applied to your account while speaking to a representative.
- Opting to allocate your payment after you enter your payment amount when you make a payment using the automated phone system.
|
Providing payment instructions to us separate from your payment. Be sure to include your account number. You may use the Future Payment Allocation Form (PDF). |
Auto-debit |
Providing one-time special handling instructions to us by uploading, fax or mail. Be sure to include your account number.
Note: Auto-debit payments are automatically applied to your account. The payment will be reapplied per your instructions after it has been applied.
|
Providing payment instructions to us separate from your payment. Be sure to include your account number. You may use the Future Payment Allocation Form (PDF).
Note: Auto-debit payments are automatically applied to your account. Each payment will be reapplied per your instructions after it has been applied.
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How can I apply my payments to only the loans I have cosigned for a borrower who has additional loans?
You may allocate payments to only cosigned loans. Follow the instructions in the answer to How do I allocate payments differently? on this page.
To make online payments to cosigned loans, create or log in to your online account. If your account was transferred from Higher Education Servicing Corporation or your rehabilitated loan was purchased by First Convenience Bank after Dec. 31, 2020, log in here. All other users may access their online account.
What happens if my payment fails or is rejected?
If your payment fails or is rejected, Aspire Servicing Center will notify you through your online paperless inbox or, if you are not signed up for paperless correspondence, by mail. Please resubmit your payment as soon as possible either by mailing a check, paying over the phone or paying online.
When a payment is rejected your account may become past due, which in turn may result in late charges, more accrued interest and negative reporting to the consumer reporting agencies.
How can I see my payment history?
Payments are viewable online after you create or log in to your online account. You may also contact us to request a payment history be mailed to you.
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