Loan Holders may register to access Electronic Payoff and Return Funds Services available online through the U.S. Department of Education's Direct Consolidation Loans Web site. The U.S. Department of Education offers the following services through its web site:
- Online Account Registration
- EFT Payoff Service Enrollment
- EFT Return Funds Service Enrollment
Online Account Registration
All loan holders are required to register and provide information about their organizations including the contact information for the loan holder administrator who will be responsible for their Electronic Payoff and Return Funds Services account. Once registered, the organization’s designated loan holder administrator can grant access to these online electronic services to other users in their organization. The security features of this web site allow only authorized users from an organization and the Direct Consolidation Loans (Consolidation Department) to view the organization’s data.
- Agency Loan Holders: Agencies must register their organizations to access the SF1081 payoff manifests posted online. Once registered, agencies can easily view and download SF1081 payoff manifests directly to their systems. Agencies can notify the Consolidation Department of overpayments and underpayments of principal, interest, collection costs and other eligible fees online via this web site.
- Agencies can enroll in EFT Payoff and Return Funds Services. The EFT Payoff Service enables agencies to receive Direct Consolidation Loan collection cost payments via ACH or Fedwire instead of checks. EFT Return Funds Service allows agencies to send overpayments of collection costs via ACH instead of checks. EFT Services enables loan holders to receive and return payments faster and more securely.
- Private Loan Holders: Private loan holders that register their organizations must also enroll for the EFT Payoff Service to access the payoff manifests posted online. In addition, private loan holders can enroll for the EFT Return Funds Service in order to return overpayments through ACH to the Consolidation Department.
EFT Payoff Service Enrollment
The EFT Payoff Service allows loan holders to receive loan payoffs via ACH or Fedwire rather than individual checks. Loan holders have the option to download manifests directly to the loan holder’s systems. Payments sent by Fedwire, transfers funds within one to two days. ACH transfers funds in loan holders designated accounts in about 3 days from the date the Consolidation Department posts the payoff manifest online. Enrollment in the EFT Payoff Services can result in reduced check processing expenses.
Loan holders enrolling for the EFT Payoff Service must provide the organization’s DUNS numbers (unique identifier assigned by Dun & Bradstreet), Taxpayer Identification Number, Fedwire or ACH funds transfer preferences, EFT financial institution information and Loan holder’s bank account information.
EFT Return Funds Services Enrollment
Loan holders enrolled in the EFT Payoff Service can enroll in the EFT Return Funds Service. This service allows loan holders to return overpayment to the Consolidation Department via ACH rather than by check. This service also allows organizations to create Payment Adjustment Manifests through the web site that includes the loan detail for organizations EFT Return Funds ACH payments. In addition, the service provides the opportunity to request additional funds for loans that were not fully paid off by the Consolidation Department’s prior payments. While the online Payment Adjustment Manifest feature is not required for participation in the EFT Return Funds Service, the Consolidation Department encourages all organizations to utilize this service option.
Update Electronic Payoff and Return Funds Services Enrollment
Loan holders previously registered for Electronic Payoff and Return Funds Services can add to their existing enrollment by submitting additional enrollment requests. To apply for additional enrollment services, Loan Holder Administrators need to log on to Electronic Payoff and Return Funds Services Online and proceed to the Administration web page section to access these services.