My wife is done with her medical education and we are in a very fortunate position to be able to pay off all of her federal student loans in a single payment.
In logging into Nelnet this seems to be as easy as typing in a routing and account number of a bank and hitting next a few times. With that being said the size of the transaction was giving me pause so I did a bit of research and called Nelnet, but whoever I spoke to didn’t give me any more confidence in there not being some type of problem.
A few questions –
I generated a “estimated payoff” quote for 10 days in the future. This gives me an exact dollar amount of around 447k. If I pay this exact dollar amount via ACH transfer on the day of the quote, will everything close out properly? Is there something I should be considering such as posting delay and/or daily interest? My goal would be one and done and to never think of these again.
I asked Nelnet about the potential of using a wire instead of an ACH transfer but they assured me that ACH is the way to go and I will have no problems.
Anything else I should be considering?
Anything to consider in paying off 447k of loans in a single payment with Nelnet?
byu/Twochec inStudentLoans
Posted by Twochec
5 Comments
You should be good to go. ACH over wire always. You might end up with a tiny balance after the payment as the quote isn’t always 100% accurate. Just make sure to recheck in a couple weeks after the payment posts to confirm there is nothing left over.
The quote already accounts for 10 days of interest accrual, so you’ll probably get a little bit of money back (it should process effective the business day you make the transfer).
You should call your bank and see if there are any issues on *their* end. I kind of hope my bank would flag and block a half million dollar transfer and require confirmation from me. Yours might.
Definitely tell your bank as suggested. Also note that there may be delays in posting the payment for the same reason. But it will be effective the date it’s received so if there is a delay actually posting it to your account you won’t owe the interest in between
What’s the interest rate on the loans? If its less that 5% it might make more sense to invest some/all of that $447k. Average stock market return is 10% annually.
Just want to say congratulations!