Preauthorized Debit Program
What is a Preauthorized Debit Account?
A Preauthorized Debit Account (PDA) is an account that gives your bank the authority to automatically deduct your loan repayments from your checking/savings account.
What Are the Benefits?
The benefits of PDA are your repayments will always be made on time, you will save on postage fees, and you can choose from several repayment options that will better suit your financial budget while repaying your defaulted federal student aid debt.
To establish an account, you will need to complete, sign, and mail us an application. NOTE: The Preauthorized Debit Program is only available for defaulted loans, non-defaulted Perkins Loans, and grant overpayments held by the U.S. Department of Education (the Department) that are payable to the National Payment Center in Atlanta, GA. Please check your billing statements. If you send your payments to any other address, you need to contact your loan-holder to see if the Preauthorized Debit is available.
What Amount Will be Debited from My Account?
You may indicate to us whether your repayment plan is weekly, semi-monthly or monthly. The amount deducted must equal or be greater than the amount designated on your original repayment agreement.
What if I want to Cancel my PDA Service?
To cancel your PDA service, just call the Department's Servicing Center at 1-800-621-3115. After cancellation, it may take up to seven (7) days to discontinue the electronic debiting service and there may be one more automatic payment deduction from your checking or savings account.