Direct debit of student loans

[Hedy]

Does anyone out there have direct debit of their federal student loans? I'm a bit of a control freak, so I had resisted, but as the interest rate on my savings account keeps dropping, the .25% I'd save via direct debit starts appealing to me. I've heard of people having a bank account they use solely for a bill, which I think I may do (use an existing one at my credit union). Any experience?

[Caoineag]

I have had them on direct debit for a 1 1/2 years. If your due date falls on a holiday or a weekend, they take it the next business day. I have never had any issues.

[Hedy]

I have had them on direct debit for a 1 1/2 years. If your due date falls on a holiday or a weekend, they take it the next business day. I have never had any issues.

Glad to hear it!

[atomicrc11]

I've been doing the electronic debit for over 2 years and haven't had an issue. It is definitely worth the interest rate reduction.

[Superhuge]

I've had automated debit for over 2 years as well. No problems at all. 3.25% for the win!

[Jazzmint98]

I have also had my student loan payments direct debited for about 3 years and have not had any problems.

[jodi]

I've been doing it for about two years from my BOA savings account. Since I don't keep much money in my BOA account (just the minimum), I have to remember to switch the money over from my checking once a month to cover the debit - hasn't been a problem. I normally make my payments on time anyway, but it's nice to have it direct debited so I don't have to think about it. I just got my interest rate dropped 1.25% for having two years on on-time payments. It helps that I never have to think about it, or else I may have slipped up once in those two years and not gotten the reduction.

[southerndoc]

I'm assuming if they withdraw on the next business day after a holiday or weekend that if it is past your payment due date, they do not classify this as a late payment?

[cantretire]

I have everthing automatic. I love it!

[getrichslow]

I'm assuming if they withdraw on the next business day after a holiday or weekend that if it is past your payment due date, they do not classify this as a late payment?

You are correct.

[Broken Arrow]

Sooo, just to be sure, direct debit is to pay it online, straight from your checking right? If so, that's how I paid mine. Despite all that may be said about Sallie Mae, I didn't experience any problems with their payment system.

[cptacek]

I have a checking account that I pay bills out of, and keep my emergency fund in (I have another checking account used for other stuff...gas, food, etc.) I have most of my bills either direct debitted or I pay online on the vendor's site. This particular checking account pays 5.5% interest up to $25,000 (it was 6%, but it went down in the past month), so I like to keep as much money in the account as I can up to that limit to get this interest. I don't remember who, but another poster on this forum said they did direct debit as much as they could because the money stayed in the interest bearing account as long as possible. Also, the company you are paying has a record that they are supposed to be debiting the money, and if them mess up, they will probably be more likely to refund any late fees because it would be their mistake.

[dardhel]

Direct debit is the way to go, just keep track of your balances...

[jIM_Ohio]

been there, done that.

The regular payments will help your credit score
The reduce rate is money in your pocket
send the amount you save to loans as an extra payment and pay them off even sooner.

[InDebtInDC]

Who administers your federal student loans? Most reputable lenders won't give you any trouble, or will fix it if there are problems.