How Payments Work

Learn how payments are allocated and applied.

Single Loan – Account is Current

First, the payment is applied to Unpaid Fees.

Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily.

Third, the payment is applied to Unpaid Principal.

We will apply any Overpayment to next month's payment — unless you are enrolled in Auto Pay or provide special payment instructions.*

Payment Example Private Single Current

Single Loan – Account is Past Due

First, the payment is applied to Unpaid Fees.

Second, the payment is applied to Unpaid Interest. Keep in mind that interest accrues daily. If your payment is past due, you should anticipate that your loan will accrue more interest than when payments are made on time.

Third, the payment is applied to Unpaid Principal.

We will apply any Overpayment to next month's payment — unless you are enrolled in Auto Pay or peovide special payment instructions.*

Payment Example Private Single Past Due

*Providing Special Payment Instructions

How to Provide Billing Directions for an Overpayment

For mailed payments:
When you make an Overpayment, you may instruct us whether you want any Overpayment to advance your next payment due date. Please include your instructions to not advance your payment due date on a separate piece of paper enclosed with your payment. Be sure to include your Account Number with your instructions.

For payments made online or by phone:
You will be able to choose whether you want any Overpayment made online or by phone to advance your next payment due date.

Save your Overpayment billing direction:
You may also save your Overpayment billing direction for payments that have not yet been scheduled. This will tell us if you would like to be billed for your next full Monthly Payment Amount when you make an Overpayment that is equal to or more than the amount of future monthly payments.

Options for Overpayment billing direction include:

  • Advance my due date by the number of payments I cover. Even if you have zero amount due on your billing statement, continuing to make payments will reduce your total cost of borrowing.
  • Bill me for my full Monthly Payment Amount. You will be required to make a full monthly payment with your next billing statement.

To save your preferences for payments that have not yet been scheduled, log in to your NaviRefi customer account, go to your Profile, and make your selection in Overpayment Billing Directions. You may also save your preferences by speaking with an agent by phone.