My Direct Debit was approved, why didn’t my payment come out?

Billing occurs in cycles.  For example, your bill may be due on the 22nd but billed on the 2nd so your billing cycle would be 20 days from the 2nd to the 22nd.  This is important when it comes to Direct Debit.  If your Direct Debit in our example was approved on the 4th, many student loan companies don’t pull your first payment out till the 22nd of the next month, not the month you are in.

The reason for this is simple.  It is to avoid double paying.  Direct Debit will pull whether your account is paid ahead or not.  As a result many companies if you are currently in a billing cycle start the payment on the next cycle to ensure that you haven’t paid that month yet.

How do you know what your company’s policy is?  Two things you can do.  1) Ask!  2) Your direct debit approval letter will outline the policy telling you what will happen next.  This way you won’t be in the dark. Just a word of advice on this.  Due to processing times it can sometimes be 2-3 business days before your Direct Debit is pulled (even though it is backdated).  This is especially true if your payment date falls on a holiday or weekend!