Office of Loan Programs
The ACH payment option
As many borrowers are used to the convenience of not having to write monthly payment checks, we have instituted the ACH payment option for MOP and SHLP borrowers who are unable to make their payments via payroll deduction. The ACH (Automated Clearing House) network is a nationwide system of electronically transferring funds between financial institutions. Over eight billion transactions occur through ACH every year, with a total value of over 22 trillion dollars.
For the MOP or SHLP borrower using this system, the amount of the monthly payment is deducted from the borrowers’ checking account on the fifth business day of each month. This deduction is then applied as the monthly payment.
The ACH system is particularly convenient for those borrowers on a leave of absence outside of the United States where mail service is not as reliable or accessible. In addition, we have found the ACH system to be more dependable than the various “Bank by PC” or “Check Free” services offered by banks or credit unions.
If you are not on active payroll status or are planning a leave of absence, please contact our office for more information about the ACH program.