If you’re contemplating refinancing your international education loan for more favorable terms, your current loan servicer will require a “payoff statement” – also referred to as a “payoff quote,” “payoff letter,” “settlement letter” as well as “foreclosure letter.”
Let’s unravel the mysteries of the payoff statement and its significance.
A payoff statement is a document delineating the complete amount necessary to settle your student loan debt in full including:
There are multiple scenarios where a payoff statement is required:
To secure a payoff statement, you can either retrieve it from your lender’s online portal or contact your lender to request a copy. We have listed a few lenders and their processes here to help.
Prodigy Finance (US): Here is a quick guide on how to settle/close off your loan with Prodigy Finance.
Public sector banks (India): For PSBs like State Bank of India (SBI) and Bank of Baroda (BoB), you need to reach out to your home branch for a letter from the branch manager. Typically these banks have a standard template for home loan refinancing which they modify for your education loan.
Private lenders (India): With all Indian private banks as well as Non-Banking Financial Companies (NBFCs), you need to reach out to their central support team asking for “foreclosure statements.” Here’s the contact information for common private lenders in India to help you get started:
For U.S. federal student loans, visit your loan servicer’s website or contact them directly.
If you have the opportunity to gain better loan terms with a new lender , it can yield several advantages:
Actively managing your student loans is a crucial component of your financial journey. Securing a payoff statement is a vital step if you are contemplating early loan repayment, loan refinancing or purchasing a residence. Remember to evaluate multiple lenders if you are considering refinancing your student loans and bear in mind that you may forfeit federal safeguards such as income-based repayment plans and student loan forgiveness programs.
Once again, congratulations, and best wishes on your financial journey!
Apply with MPOWER to refinance your international student loan at refinance.mpowerfinancing.com
If you have already started with your application, track and upload the documents on our dashboard.
DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
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