Auto Debit (KwikPay)

KwikPay allows you to make your student loan payments by automatically deducting them each month from a checking or savings account that you designate. The payments will be effective for your due date and this payment option allows you to conveniently make timely payments without having to mail in payments each month.

Advantages

KwikPay is a convenient way to make your payments automatically each month. Your student loan payments will be made in a timely manner, and you won't have to worry about mailing in a check each month or logging into your online account to make the payments yourself. While your account is in active repayment and enrolled in KwikPay, you may receive an interest rate reduction of 0.25%*.

* NOTE: Not all lenders offer the 0.25% interest rate reduction for automatic debit. Additionally, for lenders that do offer the 0.25% reduction, it is ONLY effective for periods of repayment; you will not receive the interest rate reduction and your payments will not be drafted during in-school, grace, deferment or forbearance periods.

To register for KwikPay, access your online account at Manage My Account. You may need to create an account if you have not already done so. Select the option to 'Manage KwikPay (auto-debit)' under the Make a Payment menu and enter the required information.

Eligibility

Can I register for KwikPay if...
...my account is past due? Yes See "Can I register for KwikPay if my account is past due?" below.
...my loan is paid ahead? Yes Your payment will continue to be debited every month on your due date. If you do not wish to make payments while paid ahead, you will need to cancel KwikPay.
...my loan is in deferment or forbearance? No KwikPay payments cannot be made while your loan is in deferment or forbearance. You may, however, make manual payments at any time online, through the mail, or over the phone.
...my account is in grace status or in-school status? Yes You can register for KwikPay if you are within 180 days of the end of the grace or in-school deferment status.

Questions about Automatic Debit Payments

When will the first payment be debited on KwikPay?

We will notify you by mail or by email of the date on which KwikPay will begin drafting. The date depends on your current monthly due date and the date you sign up for KwikPay. Your loan may be placed on a forbearance until your first payment is scheduled to draft. Note that your payment will only be drafted if your account is in repayment and will not draft if your account is in a deferred status.

Can I register for KwikPay if my account is past due?

Yes. In most situations, we will place a General/Hardship Forbearance on your account to bring it current prior to the first KwikPay debit. Unpaid interest will be capitalized (added to your principal balance) at the expiration of the forbearance. You will not be eligible for a General/Hardship Forbearance if you have exhausted the maximum of 36 months of forbearance time. We will notify you when your account has been set up for KwikPay or if your account did not qualify. Note that your payment will only be drafted if your account is in repayment and will not draft if your account is in a deferred status. Please continue to make your payments, either online, by mail, or by phone, until payments begin drafting automatically.

Can I pay more than my normal payment amount when paying with KwikPay?

Yes. If you select the Alternate ACH Amount Option, you may request an additional withdrawal amount when you sign up for KwikPay. If you would like to pay more, simply enter the total amount to be debited in the “Total monthly payment amount to be debited” space when registering for KwikPay or editing your settings in the Manage My Account borrower portal. Note that the extra amount will be automatically applied proportionately to all loans and cannot be targeted to a specific group. If you wish to make extra payments toward a specific group, you may do so manually online through Manage My Account.

NOTE: If you target an extra payment to one or more group(s), it may pay that group ahead (i.e. you may advance the due date of that group) and affect the application of future payments. If you have multiple groups and are on KwikPay, our servicing system will attempt to keep the due dates of your groups aligned. If a group is paid ahead, future payments will be applied to the other groups rather than to each group’s minimum installment. If you wish that an extra payment not pay ahead your account, please contact us after an extra payment is made to request that we remove the paid ahead status. If you are paying more than twice the amount of a group’s installment, you may select the ‘do not advance due date’ option within Manage My Account to prevent the group from being paid ahead.
What if I want to cancel or change my existing KwikPay settings?

You can cancel or make changes to KwikPay at any time by logging into your online account at Manage My Account. Select the option to ‘Manage KwikPay (auto-debit)’ under the Make a Payment menu.

The ability to cancel and/or change the payment date will depend on your current monthly due date and the date you are canceling or changing KwikPay. We must receive notification at least ten (10) business days prior to the payment’s due date to allow adequate time for processing. You will receive information when signing up electronically and/or a confirmation letter that indicates the date of the cancellation and/or change. You are responsible for remitting payments until that date.

What happens if my KwikPay scheduled payment falls on Saturday, Sunday, or a holiday?

Your payments are generally drafted on your due date but if that date falls on a weekend of holiday, the payment will be deducted the next business day.

What if I don't have enough money in my bank account on the day you debit my KwikPay payment?

We will attempt to draft the payment and your bank may reject the request for insufficient funds. You will then need to manually make that payment to keep your account current. Multiple occurrences of insufficient funds may result in the termination of your KwikPay agreement, additional fees and/or loss of an interest reduction incentive.

How will my KwikPay payment be applied?

All payments are applied to any fees due first, then to interest, then principal unless your current repayment plan is Income-Based Repayment (IBR). During IBR, your payments would first be applied to interest, then to fees, then to principal. If you send in a payment greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding fees and interest is satisfied. If you have multiple loans, the payment will be applied according to each loan’s monthly installment amount.

NOTE: If you target an extra payment to one or more group(s), it may pay that group ahead (i.e. you may advance the due date of that group) and affect the application of future payments. If you have multiple groups and are on KwikPay, our servicing system will attempt to keep the due dates of your groups aligned. If a group is paid ahead, future payments will be applied to the other groups rather than to each group’s minimum installment. If you wish that an extra payment not pay ahead your account, please contact us after an extra payment is made to request that we remove the paid ahead status. If you are paying more than twice the amount of a group’s installment, you may select the ‘do not advance due date’ option within Manage My Account to prevent the group from being paid ahead.
Can I designate how to apply my KwikPay payment to my loans?

No. Payments are distributed across all of your active loans according to each loan’s monthly installment amount.

NOTE: If you target an extra payment to one or more group(s), it may pay that group ahead (i.e. you may advance the due date of that group) and affect the application of future payments. If you have multiple groups and are on KwikPay, our servicing system will attempt to keep the due dates of your groups aligned. If a group is paid ahead, future payments will be applied to the other groups rather than to each group’s minimum installment. If you wish that an extra payment not pay ahead your account, please contact us after an extra payment is made to request that we remove the paid ahead status. If you are paying more than twice the amount of a group’s installment, you may select the ‘do not advance due date’ option within Manage My Account to prevent the group from being paid ahead.
Can I make additional one-time payments while on KwikPay?

Yes. You can make one-time payments at any time online, through the mail, or over the phone.

NOTE: If you target an extra payment to one or more group(s), it may pay that group ahead (i.e. you may advance the due date of that group) and affect the application of future payments. If you have multiple groups and are on KwikPay, our servicing system will attempt to keep the due dates of your groups aligned. If a group is paid ahead, future payments will be applied to the other groups rather than to each group’s minimum installment. If you wish that an extra payment not pay ahead your account, please contact us after an extra payment is made to request that we remove the paid ahead status. If you are paying more than twice the amount of a group’s installment, you may select the ‘do not advance due date’ option within Manage My Account to prevent the group from being paid ahead.
Why did my KwikPay payment amount for this month differ from last month's amount?

An adjustment may have been made on your account since last month's payment was drafted. For example, a loan may have been paid in full or if you are on the Graduated Repayment Plan, you may have graduated to the next payment level.

My KwikPay payment pulled from my bank account and has posted to my account, but my account is still past due. Why is this?

If your account was past due at the time you requested KwikPay, and it was not brought current with a forbearance, you may need to make a manual payment to bring your account current. Your bank may also reject a payment for non-sufficient funds or for an invalid account number which may cause your account to become past due. Any past due amount will not be drafted automatically and will need to be made manually either online, by mail, or by phone.

Why am I not able to edit my bank account information for KwikPay online at Manage My Account?

If you were already enrolled in auto-debit payments with the Direct Loan Servicing Center, the bank account information used was transferred to us, and your payments will continue to be automatically debited each month. However, this transferred bank account information does not appear in Manage My Account. If you would like to make changes to KwikPay, you must re-enter your banking information into Manage My Account.

If you change your banking information in Manage My Account at least ten (10) business days prior to the next payment due date, the new bank account information will be used for your future auto-debit payment(s) instead of the bank account information that was transferred to us from the Direct Loan Servicing Center.