What a Student Loan Payoff Statement Is and How to Request One

If you have enough cash to fully repay your student loans and are ready to do it, you’ll want to request a payoff statement from your loan servicer first. Because interest accrues daily on most student loans, your balance continues to increase each day. A student loan payoff statement shows you exactly how much you owe on your loan and when it's due, helping you avoid small leftover balances.

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What is a student loan payoff statement?

A payoff statement shows the total amount needed to bring your student loan balance to zero. The payoff amount includes the principal, outstanding interest, and interest that continues to accrue up until the payoff date. If you send in your final payment after the payoff date, your servicer will need additional funds to cover the interest that accrued in the meantime. 

“Most people are not aware that the loan balance and the final loan payoff are not the same number,” says Hillary Seiler, a personal finance expert and CEO of Financial Footwork. 

“The balance shows what you owe right now, but interest adds up daily until the lender gets that final payment,” she explains.

If you’re ready to make that final student loan payment, Seiler recommends always asking for a final payoff quote. 

What’s included in the payoff amount?

Your student loan payoff amount is higher than your current balance because it accounts for interest and fees that continue to accrue until your final payment is received. Here’s what’s typically included in your payoff amount:

• Principal: This is the original amount you borrowed, minus any payments you’ve already made toward the loan balance.
• Accrued interest: Interest continues to accrue daily on most student loans. The payoff statement includes any unpaid interest that’s accumulated up to the date the statement was issued.
• Future interest: Because interest continues accruing until the lender receives your payment, the payoff quote often estimates future interest to ensure your final payment satisfies the loan.
• Fees: Depending on your lender, the payoff amount may include small administrative fees, late charges, or processing costs. These must be paid in full to close out your loan.

How to request a payoff statement from your student loan servicer

If you’re ready to pay off your student loans, you’ll want a payoff statement that tells you exactly how much you owe by a certain date. Here are the steps to take for both federal and private loans.

Identify your loan servicer

If you have federal loans, log in to your StudentAid.gov account and scroll down to the “My Loan Servicers” section on your dashboard to see which servicer manages your loan. For private loans, check your loan statements or your credit report to see which company services the loan.

Request your payoff statement

The easiest way to request a payoff quote is through your loan servicer’s online portal. When you request the payoff amount, select the date when you want to pay the loan in full. The payoff amount you receive is valid through that date. You can also call your loan servicer directly to request your payoff statement. 

Request confirmation

“After you make that last payment, request written confirmation from your servicer that your loan has been paid in full,” recommends Seiler. “And keep all your payoff paperwork, because mistakes happen and you’ll want proof if the loan ever reappears on your report, which does happen.” 

When do you need a payoff statement?

A payoff statement isn’t something you’ll use often. However, it’s necessary if you plan to close out or transfer your student loans. Here are some scenarios when you might need a payoff statement:

• Paying off your loans: Before sending your final payment, request a payoff statement to confirm the exact amount due by a specific date. This ensures your payment fully satisfies the loan, including any interest that accrues daily.
• Refinancing: When you refinance, your new lender needs an accurate payoff amount for each loan you’re consolidating or replacing. They’ll typically send the payment directly to your current servicer using the information in the payoff statement.
• Loan consolidation: If you’re consolidating multiple federal loans into a Direct Consolidation Loan, the new servicer will use your payoff details to close your old accounts correctly.

“A borrower will usually request a payoff statement when they’re refinancing, selling a property, or as a part of a lump-sum payment to close out the loan,” says Christopher Migliaccio, an attorney at Warren and Miggliaccio, LLP. 

“The most important thing to confirm when obtaining the payoff statement is that the payoff reflects all the loans held by that servicer, especially for those borrowers who may have multiple disbursements,” he advises.

Tips for making your final student loan payment successfully

Paying off your student loans is a big milestone, but it’s important to handle the process carefully to avoid any surprises. Here are a few key tips to make sure your final payment goes smoothly:

• Double-check your payoff date: Your payoff quote is only valid through a specific date. If payment arrives after that date, additional interest may have accrued, so you’ll still owe a small balance. You’ll need to request a new payoff statement if you miss the deadline.
• Use the correct payment method: Follow your servicer’s instructions on how to submit the final payment. Some require payment by check or electronic transfer rather than through autopay. Sending it the wrong way could delay processing or cause the payment to post late.
• Pay a little extra: To avoid leaving a small unpaid balance due to daily interest accrual, some experts recommend rounding up your final payment slightly. Any overpayment will typically be refunded once the account closes.
• Check your credit report: About 30 to 60 days after payoff, check your credit report to make sure the account shows as “paid in full.” If it doesn’t, contact your servicer to correct the reporting.
• Keep all records: Save copies of your payoff statement, payment confirmation, and correspondence. Servicers occasionally change systems or merge accounts, and having documentation protects you if discrepancies arise later.