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Web many student loan borrowers use autopay programs (also known as automatic debit), where student loan. Web payment allocation is how a payment is spread across multiple loans. Web by telling your loan servicer how you would like excess payments sent to them to be applied, you’ll get out of. Web use the auto allocate option when making a payment online to tell us which method you'd like us to use to allocate your. It can be overpayment, prorated by current balance,.