Can I end Paid Ahead status?

We talked here about why Paid Ahead status is a really good thing that will benefit you more times than it doesn’t.  But there are times you may want to end it.

There are two main reasons you may want to not allow Paid Ahead Status to occur on your account.

The first one is if you are enrolled in Public Service Loan Forgiveness.  To qualify for PSLF you have to make 120 separate qualifying payments.  If you make a payment that is greater than the amount (for example $100.00 for a $50.00 installment amount) this does not count as two payments, but rather as one.  (To learn more about what payments count for PSLF see here).

In this situation, here is where Paid Ahead can hurt you.  If you make a payment that partially satisfies a future payment, your statement will show a lesser amount.  If you make this lesser amount your payment will not count as a qualifying payment since you have to make the full payment within the qualifying payment window.

The second reason is a mental exercise.  If you think that getting a bill for less will cause you to not continue to pay as much as you can to pay off your loan quicker, than you may want cancel Paid Ahead status.  This will get you the same monthly payment every month and can help you always pay at least your monthly payment.

If you want to end your Paid Ahead Status speak to your servicer.  They can let you know if the request needs to be done in writing or if you can do it verbally.