A student loan payoff letter — also known as a “payoff verification statement” or a “payoff statement” — is a statement from your student loan lender that outlines your payoff amount, monthly bill obligation and other account information. A student loan payoff letter is only valid for a specific amount of time after the lender issues it. You can get a student loan payoff letter whether you have private student loans or federal loans, or a combination of both.
A student loan payoff letter doesn’t prove that you’ve paid a loan in full — instead, it shows how much you still need to pay in order to completely pay off your student loan debt. This amount differs from your current balance, as your balance doesn’t include the interest you owe. A student loan payoff letter can also include any fees you haven’t yet paid.