Loan FAQ
The Automatic Direct Debits Repayment Plan (ADDRP) is a way of making your loan payments without physically writing and mailing a check. The reason it is called "direct debits" is because the amount of your loan payment is automatically debited from your bank account and credited in our bank account on your due date. Even when you are out of town, your monthly loan payment will be automatically paid. Save time and money, reduce paperwork, eliminate lost or late payments, and decrease check writing.
Yes.
Your loan payments will be debited from your bank account on the first of each month. If the first of the month falls on a weekend or holiday, the payment will be deducted from your bank account on the next available banking day.
No
Complete and return an Authorization Agreement for Pre-Arranged Payments (Debits) form. You can obtain an authorization agreement by downloading the form or contacting our office. Enclose a voided check, along with the authorization agreement form, to verify your bank account information. Send a check for your next monthly installment due. The manual payment is necessary in order to allow us ample time to complete the necessary paperwork and to make arrangements with our financial institution.
When the completed authorization agreement (with attached voided check) and your next monthly installment is received in the Foundation office, the Foundation will then send you a confirmation letter informing you of the date your first automatic direct debit will occur.
Attaching a voided check is the best way to ensure that all the bank account information is correct. The voided check will help to prevent mistakes that may occur while setting up your account onto automatic payments and slowing down the enrollment process.
No. A deposit slip from your account does not have all the required information.
No, it's FREE!
If you plan to change banks, please notify the Foundation promptly in writing. You may either send a letter listing the new bank's name and address, bank's ABA transit number, new account number, and voided check from the new account; or you may call the Foundation, at (717) 558-7809 or (800) 228-7823 (in PA only), and request an Authorization Agreement Form and then complete and return with a voided check from the new bank account.
Please allow the Foundation time to switch your automatic payments to the new bank. Therefore, we recommend that you leave enough funds in the old bank account to cover the next monthly payment due. Once the Foundation has successfully switched your automatic payments to your new bank, we will send you a letter informing you of the date your automatic payments will begin to be deducted from the new bank account.
You are the only person who has control over your bank account. When you sign up for automatic payments, you are only authorizing a payment to be made to the Foundation each month, you are not giving the Foundation control over your account.
Yes. Your payment amount will appear on your bank statement. Also each January, the Foundation mails a Statement of Account to each borrower listing all payments received during the prior year.
If an automatic payment is refused by your bank for any reason, including insufficient funds, closed, or unauthorized accounts, you will be notified and it will be necessary for you to mail us a check to replace the rejected payment. If this occurs, we have the right to discontinue the automatic payments service. Your bank may also deduct fees from your account for the rejected payment.