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Repaying Student Loans Online?
I would like to make student loan payments on www.dl.ed.gov website but I have a fear that in doing so, the Feds will then gain my bank account number or bank debit card number etc. and try to take more than the required payment if I were to fall behind on payments. Am I better off just sending money orders to repay my student loans in order to make sure that money I need doesn’t disappear from my bank account???
And No, I'm not making a zillion a year with my BA. I will need to attend grad school.
2 Answers
- ?Lv 41 decade agoFavourite answer
You are completely safe making these payments online. One of the nice things about a Direct loan is that the government follows the law to the letter. First of all, every type of form you could need is on their site including applications for deferment (which you will probably want to do if you get into grad school.) Unless you sign up for automatic payments (.25% discount on your interest) you will use your banking info on file for one-time payments each month.
- trh2000_2000Lv 71 decade ago
Actually, they can't just take money from your account when you miss a payment. There are protocols they HAVE to follow before they can garnish something.
Also, new laws have come out, you have up to 6 months before you can be in default, but they will not take action on your account until 9 months. So if you can make a payment for almost 2/3 thirds a year, something must be wrong.
And even then, they can't garnish your bank account, they would garnish something THEY KNOW HAS A CREDIT such as your pay check or your income tax refund.
