Edfinancial Services > Tools > Take Control of Your Student Loan Debt > Auto Debit FAQ

Frequently Asked Questions about Automatic Debit Payments

Automatic Debit, or Auto Debit, allows you to have your student loan payment automatically withdrawn from your checking or savings account each month. It's a simple, no-hassle way to pay, and you'll never have to worry about late fees since your payment is made electronically on the same day every month. Below are some questions that may help you understand the auto debit process.

What is Auto Debit?
Why sign up for Auto Debit?
Am I eligible?
Can I sign up for Auto Debit if my loan(s) are delinquent?
How do I apply?
Can someone other than the borrower sign up?
How will I know when the service begins?
Will I continue to receive my paper bill?
Can I pay more than my installment amount?
What if my installment amount changes?
What if the funds are not available on my due date?
What if my due date falls on a weekend or holiday?
What if my financial institution information changes?
What if I request a deferment or forbearance?
What do I do if new loans come into repayment?
How do I discontinue the service?

What is Auto Debit?

Auto Debit is a free, automatic payment service for borrowers who prefer not to write checks to make their monthly loan payments. Once approved, Edfinancial will electronically transfer your monthly installment, along with any additional amount you have requested, from your checking or savings account to your student loan account. This automatic transaction will happen on the same date each month.

Why sign up for Auto Debit?

Auto Debit is the easiest and most convenient way to make your student loan payments.

No more late fees; since your installment amount is automatically withdrawn from your bank account, your payments will never be late (as long as the funds are available).
Save money; no need to keep a large supply of stamps and envelopes, or pay for checks.
Save time; your time is valuable. The transaction is automatic so there's no need to make a trip to the post office to mail your payment.
Help the environment; going paperless saves resources and reduces solid waste.

Using this service may also qualify you for an interest rate reduction. Please contact us to find out if your lender offers this incentive.

Am I eligible?

You are eligible for Auto Debit if:

Your loan(s) have entered repayment
You are receiving a monthly installment bill
Your loan(s) are current and in good standing
Your loan(s) have not previously had an Auto Debit payment denied due to insufficient funds three times in a calendar year

Any loan(s) you are currently receiving interest notices or interest bills for will not be eligible for this service until they have entered repayment.

Can I sign up for Auto Debit if my loan(s) are delinquent?

No, your loans must be current and in good standing to sign up for Auto Debit.

How do I apply?

To authorize Auto Debit service, print the appropriate PDF agreement form here. Then complete, sign, and return it to Edfinancial according to the instructions on the form.

Can someone other than the borrower sign up?

Only borrowers and/or endorsers may sign Auto Debit agreements.
Endorsers may apply only for the loans they have co-signed for.
Powers of Attorney may sign the form, provided Edfinancial has a copy of the Power of Attorney document(s) on file.

How will I know when the service begins?

The month the service will begin, your installment bill will include a message informing you that the payment is scheduled to be withdrawn. This will be your final paper bill.

Will I continue to receive my paper bill?

Once you have received the bill notifying you that your automatic payments will begin, Edfinancial will no longer send monthly paper statements. The only exception to this is any time your installment amount has changed. In these cases, you will receive a bill to serve as your notification of the change.

Can I pay more than my installment amount?

There is no limit to the amount you may have withdrawn monthly from your account. When filling out your agreement form, enter the additional amount as instructed. Please be aware that this additional amount will continue to be withdrawn even after a change in installment amount.
Please submit any changes to additional amounts in writing. We will accept changes to additional amounts via email only if they are sent from the email address we have on file. Additional amounts are prorated across all loans with the same due date. It is not possible to apply specific amounts to individual loans with the same due date. You may continue making telephone and online payments in addition to the funds being withdrawn by Auto Debit.

What if my installment amount changes?

You will receive correspondence notifying you of your new payment amount. This new amount, along with any additional amount you have requested, will be withdrawn automatically from your account on your scheduled due date unless you have notified us of your intent to discontinue the service.

What if the funds are not available on my due date?

If you will not have the funds available in your account the date your payment is to be withdrawn, you should notify us immediately. You will need to contact us at least five business days before the transaction, as we may be able to temporarily suspend the service.

Please note: If you suspend Auto Debit and you qualify for an Auto Debit interest rate reduction, you will not receive it for the month suspended. If you have not suspended the service and withdrawal is attempted, your payment will remain outstanding until another method of payment is received. Edfinancial will not attempt a second debit from your account if the first is returned due to non-sufficient funds. Please be aware that repetitive occurrences of this type may result in the termination of the service.

What if my due date falls on a weekend or holiday?

If your due date falls on a weekend or holiday, the payment will be withdrawn from your account the following business day.

What if my financial institution information changes?

If you become aware of any changes to your bank account information, you must submit a new Auto Debit application to continue the service. It is important you notify us, as it may be necessary for us to suspend the pending transaction in order to prevent a debit from an inactive account. You will need to contact us for assistance at least five business days prior to your scheduled payment date.

What if I request a deferment or forbearance?

If your loans are approved for a period of deferment or forbearance, the service will automatically be suspended until this period expires. You will receive an installment bill notifying you of the first payment to be withdrawn following the period.

Please note: To prevent an unwanted Auto Debit extraction while your forbearance or deferment request is being processed, you may also contact us to have the service suspended.

What do I do if new loans come into repayment?

Complete, sign, and return a new Auto Debit application for new loans as well as consolidation loans.

How do I discontinue the service?

You must provide us with signed, written notification in order to cancel or discontinue this service. Please allow up to 10 business days for processing this request. If your due date will fall in this processing window, you will need to contact us at least three business days before the transaction, as we may be able to temporarily suspend the service.

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