Take your statement and explain you want to payoff the loan. The Office of Student Financial Aid administers federal, state and university need-based aid.A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends. Learn how payoff letters work. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. Debt settlement is an agreement between a lender and a borrower, typically for a large, one-time payment toward an existing balance. Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free. Columbia Credit Union is your local not-for-profit financial institution.