It’s complicated. Moreover, it is not within our control.
When we transmit LRAP awards to loan servicers, we include any instructions that LRAP participants have saved as “allocations” (in our portal under Loans and Awards), but these instructions are not always applied, especially if the instructions do not match the servicers’ rules and policies.
More information about how specific servicers apply payments is below:
https://www.mohela.com/DL/resourceCenter/HowPaymentsAreApplied.aspx
https://nelnet.studentaid.gov/content/howpaymentsareallocated
https://aidvantage.studentaid.gov/in-repayment/about-payments
https://edfinancial.studentaid.gov/help-center/how-payments-are-applied
To ensure that your servicer applies awards as you desire, it is recommended that you submit written standing instructions directly to your servicer and follow up with them as necessary.
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