Your first loan payment is about to come due. How do you pay it? There are numerous different ways to pay your loan bills, and your servicer will be more than happy to provide you with all of the possibilities. However, most loan servicers have two main pay types: direct debit and paying online. Both offer incentives and both are efficient ways to ensure that your loan bills are paid on time.
The most common type of way to make your student loan payments is through direct debit. This convenient way will make sure that your loan is paid on time every month. Many of your bills may already be paid through direct debit, so you should be familiar with this type of payment option. Many, if not all, servicers will offer this service for free to the loan borrower, and many servicers may even give you an interest rate reduction for signing up for direct debit. Direct debit means that an electronic deduction is taken out of your checking or savings account on the same date each month, thus ensuring that payment is never late.
Another common type of way to make your student loan payments is by paying online via your servicer’s website. Paying online is convenient because you can make a payment at any time during the day or night. You can also schedule payments in advance. Lastly, paying online gives you the flexibility of paying extra toward a specific loan. If you have extra funds to allocate to loan payments, you can target higher-interest loans in an effort to reduce the amount of interest you have to pay.
There are other types of payment options that can be utilized to pay off your student loans. Contacting your servicer is always a great option, as they will provide you with valuable information. Direct debit and paying online are two very popular ways to make student loan payments, so make sure you ask your servicer about their direct debit and online payment programs.
By Ryan Laspina
Senior Specialist, Red Flags and External Reviews
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