Student loan payments may be among your biggest expenses and you are probably looking forward to the day when you make that final payment. If you have reached that stage and paid your entire balance in full, you may still end up receiving a payment notification letter in the mail or find that you have a balance owed showing your credit report. In some cases, there may be some interest that accrued from your last balance that hasn’t been paid yet, but in other cases, it could just be a mistake.
If you’ve already paid off your student loan and find that there’s still a balance showing on your credit report or the U.S. Department of Education says you are still owe them money, here’s what you need to do:
Gather Documents that Support Your Proof of Payment
If you were making your student loan payments with a personal check, see if you can find copies of those checks or a duplicate copy of your final payment. If you sent your payments with a cashier’s check, find any records of that payment or transaction. If you were taking advantage of the Treasury Offset Program, you can submit a copy of the notice from the U.S. Treasury’s Financial Management Service (FMS) form the IRS or the State Department of Taxation that claims your federal and/or state tax refund or other payments were offset. If you made payments with a credit card, you can gather copies of your billing statement that show your most recent transactions.
Write a Cover Letter to the Department of Education
Any proof of payment can be attached to a cover letter stating to the Department of Education. In this letter, you will need to indicate how much you have paid, provide information including your name and social security number, and also explain when you made your last payment. Provide as many details as possible so that the Department of Education has a good understanding about your case and can make their decision to clear up your account.
Send Your Case Details to the Department of Education
You will need to send any demand letters you’ve received about your student loan, your cover letter, and all supporting documents to the U.S. Department of Education’s National Payment Center. You will need to send all documents to the following address:
National Payment Center
c/o U.S. Department of Education
P.O. Box 5609
Greenville, TX 75403
Visit the FSA website for more information.