Will AutoPay continue after loan is paid off?

[StriderM99]

I have a student loan with Navient. My payment was $107 a month. I only had a few months left ($411 balance) and decided to pay it off today.

It has always been paid with autopay. Technically, the next payment will be on the 5th of August.

Since the account will be paid off by then, will Navient terminate the autopaying process, or should I go in and discontinue it myself?

[Luscher]

To be safe, why not just go in an discontinue it.

[StriderM99]

I probably will do just that, but was just curious if anyone knew. Once the payment hits my account on Monday, I'll probably go in and stop it.

[youdontkillmoney]

My wife had navient. She had autopay. She paid it off, and then paid off an extra $20 to ensure every cent of interest is covered so it will definitely close.

What happened was that the $20 overpayment was too much so Navient in a month sent back a check refund for $20.00

As for autopay we kept it active in case there was a penny left for some reason on the balance and we want to ensure the autopay went through, so we ensured there was enough in the checking to cover it at least through one month's cycle of autpay.

It turned out by paying off the balance as shown online, it was paid in full and autopay did not go through as no payment was due.

So if you want to be safe, keep autopay for a month until your loan is confirmed paid in full. If you are comfortable with our example, you can take autopay off if you are SURE every penny is paid off and there is a $0 balance. 

[Pat94108]

I paid off one of my account a few years ago, and I rounded up the auto pay by a few dollars (the balance was maybe 872 and I rounded it up to 875), but the autopay only withdrawn the actual balance. If there's nothing to withdraw then no amount will be withdrawn.

Also, I don't know how it is with navient, but with Great Lakes, you can usually know what your pay off balance is and what you have to pay within a certain amount of time. There is a link on Great Lakes that calculates the pay off balance and it tells you that they need to receive that amount of money before a certain date so you know you won't have anything to pay the following month. With Great Lakes they make sure to let you know what is and what isn't the pay off amount (balance with accrued interest doesn't necessarily represent the pay off balance).

You should find out what your payoff balance is and then pay that amount. 

[StriderM99]

Thanks for the reponses everyone.

I got an email from Navient yesterday-

It started off thanking me for their business, then gave this info..

The final payment of $411.11 was received on July 27, 2015. The balance for the loan ending in -2834 is $0.00 as of the date of this message. The automatic debit repayment program has been terminated. We will close the loan and notify the consumer reporting agencies approximately 30 to 45 days after your final payment was received.

They sent it as a PDF with a confirmation number as well, so I have that saved as documentation incase it is needed later on down the road.

[youdontkillmoney]

Congrats on paying off the student loan. Wonderful feeling!

[Anonymous]

There is a VERY real reason not to manually terminate the AutoPay.

Most borrowers with AutoPay enjoy a .25% APR reduction.  Navient customer service will swear up and down that you should remove the autopay after getting a 10-day payoff and paying the note.  Further, the fine print on the AutoPay APR reduction says that it's valid "so long as automatic payments are being successfully collected from the account" - mine was, about 21 days earlier.

But here's what happened to me.

Calculate payoff.

Make payment on-line for a week before the due date, coincident with the calculated payoff date.

Remove autopay.

See clearing of payment from checking account.

Log in, see loan balance is .03.

Erupt in hostile anger.

Calculate the difference in interest over the eight day  time span between date removed and date paid off.  $0.0263

Navient claims they'll do a goodwill writeoff when they run through.

But what this affects is CRA reporting - the difference between a loan that reports before the goodwill writeoff (has a balance) and after (doesn't have a balance) could be important to some people's scores.

I caught it in time to make another .03 payment and have a zero line.  This AM's CRA updates now show a closed tradeline.

Moral to the story:  do not discontinue the AutoPay until the balance is actually at zero.

[youdontkillmoney]

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@Anonymous wrote:

There is a VERY real reason not to manually terminate the AutoPay.

Most borrowers with AutoPay enjoy a .25% APR reduction.  Navient customer service will swear up and down that you should remove the autopay after getting a 10-day payoff and paying the note.  Further, the fine print on the AutoPay APR reduction says that it's valid "so long as automatic payments are being successfully collected from the account" - mine was, about 21 days earlier.

But here's what happened to me.

Calculate payoff.

Make payment on-line for a week before the due date, coincident with the calculated payoff date.

Remove autopay.

See clearing of payment from checking account.

Log in, see loan balance is .03.

Erupt in hostile anger.

Calculate the difference in interest over the eight day  time span between date removed and date paid off.  $0.0263

Navient claims they'll do a goodwill writeoff when they run through.

But what this affects is CRA reporting - the difference between a loan that reports before the goodwill writeoff (has a balance) and after (doesn't have a balance) could be important to some people's scores.

I caught it in time to make another .03 payment and have a zero line.  This AM's CRA updates now show a closed tradeline.

Moral to the story:  do not discontinue the AutoPay until the balance is actually at zero.

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^^^

good point, we left ours on autopay so as t not rock the boat and even overpaid $20 extra just in case to ensure a zero balance. It was zero and they sent us a check $20 back. all done. credit report says zero bal. and closed. no lates etc.