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.Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. What is a Payoff Agreement? A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. A student loan payoff letter, also called a payoff statement or loan verification letter, outlines your loan's essential details. Our Payoff Letter template facilitates easy loan settlements. This document clearly outlines the final payment amount, including any interest or fees.