What Is a Payoff Statement for Student Loans?

Credible takeaways

A student loan payoff statement details the total amount you must pay to completely satisfy the loan, including outstanding fees and accrued interest.
Once you get a payoff statement, it's only valid for a certain period of time.
You may need a payoff statement to refinance your loans, apply for a mortgage, or pay off your debt early.
Unlike a monthly statement, a payoff statement is a document you’ll need to request from your lender.

A payoff statement for student loans details exactly how much you’d have to pay to completely satisfy your student loan debt, interest and all. According to data from the Federal Student Aid office, over 43 million Americans managing educational debt may need a payoff statement to apply for a refinance loan, take out a mortgage, or pay off their debt ahead of schedule. Here’s what you need to know.

What is a payoff statement?

A payoff statement is a document that specifies the amount you would need to pay by a certain date to fully clear your debt on a loan. This amount includes any outstanding fees you have yet to pay, as well as accrued interest.

Most payoff statements will also specify a good-until date, since the calculation for the payoff amount includes interest that will accrue from the point the statement is issued until the date that payment is made. If you have student loans, this interest accrues on a daily basis. After the good-until date passes, the payoff amount is no longer accurate, as interest will have continued to accrue.

What's included in a payoff statement?

Your student loan payoff statement will provide detailed instructions on how to pay off debt in full. Here’s the specific information you can expect to find:

1. Payoff amount

This is the amount of money you will pay to completely satisfy your student loan debt. The payoff amount includes several sections:

Outstanding balance: This is the amount you currently owe, including any newly added interest. Your principal balance is based on the original amount of money you borrowed, plus any accumulated interest.
Accrued interest: Interest accrues on your loan daily. Any unpaid interest must be paid in order to pay off your student loan completely.
Any incurred fees: If you have any unpaid fees on your student loan, this amount will also show up on your payoff statement.

Good to know:

The amount listed on your payoff statement should be different from your current loan balance, because it includes interest accrued through the day you pay off the loan.

2. Good-until date

Since the specific amount you need to remit to pay off your loan changes as interest accrues, your payoff statement will provide a “good-until date.” After that date has passed, the payoff statement will no longer be accurate, since new interest will have accrued. Your payoff statement may also list this as your “good-through date.”

3. Interest charges

Any interest that has accrued since your last payment will also need to be paid off. The payoff statement will tell you the exact amount of your accrued interest.

Why do you need a student loan payoff statement?

There are few scenarios in which you may need a student loan payoff statement:

To get an accurate payoff calculation: If you want to pay off student loans early, you'll need a payoff statement to confirm the exact amount you'll need to pay to fully wipe out the debt. If you rely on your monthly statements, you may not cover all of the remaining interest and fees owed.
To buy a home: If you're applying for a home mortgage, you may need to provide a student loan payoff letter. Lenders take into account your debt-to-income ratio (DTI) when reviewing your application, and they may want to see how much you owe on your student loans until they’re paid off in full.
To refinance your loans: Similarly, a lender may ask for a student loan payoff statement if you refinance your student loans. When you refinance, your new lender pays off your existing loan, so they may need to confirm the amount you owe on your student loans at that time.

Good to know:

Refinancing student loans may help you save money by reducing your interest rate. But if you have federal loans, avoid refinancing so you can maintain access to income-driven repayment and other federal benefits.

4.44.4

Credible rating

Fixed (APR)

5.48% -

Loan Amounts

$10,000 up to total refinance amount

Min. Credit Score

680

Check Rates

on Credible’s website

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Overview

Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.

Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.

Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.

Interest rates

Fixed and variable

Minimum credit score

680

Minimum income

$35,000

Loan terms

5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing

Loan amounts

Minimum of $10,000 with no set maximum.

Cosigner release

None

Eligibility

Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.

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4.64.6

Credible rating

Fixed (APR)

5.49% -

Loan Amounts

$5,000 - $250,000

Min. Credit Score

680

Check Rates

on Credible’s website

View Details

Overview

Founded in 2009, LendKey partners with 300+ community banks and credit unions to connect borrowers with the loans they need. You can compare multiple lenders at once without affecting your credit score.

However, the exact terms and qualification requirements available through LendKey vary depending on your chosen community lender. While you can easily compare options, you’ll need to read the fine print of each offer to make sure the loan offers everything you need.

Interest rates

Fixed or variable

Minimum credit score

680

Minimum income

Does not disclose

Loan terms

5, 7, 10, or 15 years

Loan amounts

$5,000 to $250,000

Cosigner release

Varies based on lender's terms

Eligibility

Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.

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3.93.9

Credible rating

Fixed (APR)

5.85% -

Loan Amounts

$5,000 - $250,000

Min. Credit Score

670

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on Credible’s website

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Overview

INvestEd is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.

However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.

Interest rates

Fixed or variable

Minimum credit score

670

Minimum income

Does not disclose

Loan terms

5, 10, 15, or 20 years

Loan amounts

$5,000 to $250,000

Cosigner release

12 months

Eligibility

U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.

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3.83.8

Credible rating

Fixed (APR)

6.00% -

Loan Amounts

$7,500 - $200,000

Min. Credit Score

700

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on Credible’s website

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Overview

EdvestinU is a loan program offered by Granite Edvance Corporation and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.

EdvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options.

Interest rates

Fixed or variable

Minimum credit score

700

Minimum income

Does not disclose

Loan terms

5, 10, 15, or 20 years

Loan amounts

$7,500 to $200,000

Cosigner release

24 months

Eligibility

U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.

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Credible rating

Fixed (APR)

6.20% -

Loan Amounts

$10,000 up to the total amount

Min. Credit Score

670

Check Rates

on Credible’s website

View Details

Overview

Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.

Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.

Interest rates

Fixed

Minimum credit score

670

Minimum income

Does not disclose

Loan terms

7, 10, or 15 years

Loan amounts

$10,000 up to your total debt

Cosigner release

None

Eligibility

Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.

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3.73.7

Credible rating

Fixed (APR)

6.34% -

Loan Amounts

$7,500 - $250,000

Min. Credit Score

680

Check Rates

on Credible’s website

View Details

Overview

Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.

RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.

Interest rates

Fixed

Minimum credit score

680

Minimum income

$40,000

Loan terms

5, 10, or 15 years

Loan amounts

$7,500 minimum up to of $250,000, depending on degree

Cosigner release

None

Eligibility

Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.

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4.74.7

Credible rating

Fixed (APR)

6.49% -

Loan Amounts

$10,000 - $750,000

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

View Details

Overview

Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt.

Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.

If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.

Interest rates

Fixed or variable

Minimum credit score

700

Minimum income

Does not disclose

Loan terms

5, 7, 10, 15, or 20 years

Loan amounts

$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees

Cosigner release

36 months

Eligibility

Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.

Read full review

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

How to request a payoff statement

The process of getting a payoff statement can vary from lender to lender. In many cases, you’ll be able to download a payoff statement through your online account. Or, you can always call your lender to request one directly.

If you have federal student loans, you can see who your loan servicer is by visiting your account dashboard and going to the "My Loan Servicers" section, or by calling the Federal Student Aid Information Center at 1-800-433-3243.

Here's the contact information for some of the major federal student loan servicers:

MOHELA: 1-888-866-4352
Nelnet: 1-888-486-4722
Edfinancial: 1-855-337-6884
ECSI: 1-866-313-3797
Aidvantage: 1-800-722-1300
CRI: 1-833-355-4311

Frequently asked questions

How are payoff statements different from monthly statements?

A payoff statement shows an overview of how much you'll need to pay until your loan is paid off in full, while your monthly statement reflects how much you owe on that particular month and by what date. Your loan servicer must send you a monthly statement each month ahead of your payment due date, but you’ll usually need to request a payoff statement.

What is a payoff amount?

A payoff amount is the total sum you must pay to fully satisfy your outstanding debt. This calculation includes any remaining principal balance, as well as any applicable fees you've incurred and accrued interest. The interest calculation for a payoff amount will factor in any interest that will accrue between when the letter is issued and the date that payment is made.

Is the payoff amount less than the principal balance?

No, it's likely that your payoff amount will exceed your remaining principal balance. This is because the payoff amount also takes into account accrued interest that you've incurred on the principal balance. The payoff amount will also include any fees you've incurred but haven't paid.

How long does it take to get a payoff statement?

The length of time it takes to receive a payoff statement varies depending on whether you request it online or by mail. If you go through your servicer's website, you may be able to generate a statement immediately, whereas via mail, it can take up to 10 days.

What information does a payoff letter include?

A payoff letter details the total amount owed for a loan to be paid off in full. This amount will include the interest that will accrue on a daily basis between when the payoff statement is issued and when the payoff occurs. The letter will include a “good-through” date, after which point its calculations will no longer be accurate. You'll also find basic information about the loan on the payoff letter, such as the current loan status and loan type.

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Emily Guy Birkin has contributed to the reporting of this article.

Meet the expert:

Becca Stanek

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as the managing editor for investing and savings content at LendingTree and an editor at SmartAsset. Prior to that, she was a staff writer at The Week. She’s currently freelancing for publications including SoFi, Forbes, and The Week while she earns her MFA in creative writing.