How do Americorp Payments differ from regular payments?

I’ll be honest, Americorps can be extremely frustrating from a loan representative’s perspective.  The reason for this is often times because of misinformation and impatience.

In terms of Americorps payments, there are a few special caveats to these types of payments.   First off they are submitted through the company’s website at americorps.gov.  This creates a request to be completed by the student loan company.   After the company completes this request, it is sent back to Americorp for payment.

This entire process can take up to 30 business days to be completed and once completed can take up to 7 business days to be posted to the servicers system.  Which means in essence that you will often times find yourself delinquent if you try to use these for your regular monthly payment.  My advice to borrowers is that Americorp payments are used to reduce your balance not to serve as a regular monthly payment.  Otherwise you will be constantly emailing and calling in upset that your payment is late.

So how do you know if the process is working the way it is supposed to?   If the request made on Americorps.gov states “Pending Institution” the payment has been received and is being worked.