Private Loan Payoff Letter Template offers a clear and professional format for requesting an official statement of your loan payoff balance. A student loan payoff letter, also called a payoff statement or loan verification letter, outlines your loan's essential details.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. 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. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. A 10 day payoff is crucial to getting your old loans paid off during a refinance. Learn how it works from start to finish.