View Full Version : ? about student loan

totouchantler
I currently pay approx 50 dollars over the min. payment on my student loan. I have not been asking them to take the extra dollars off the principal amount. Should I do this. My interest rate is locked at 3.5 %. Thanks.
Chris
thasnake82
Usually anything paid over the interest owed for each payment is applied to the principal.
Dingobiscuit
If you send the payments by check, you could always send two checks, one for the monthly payments and the "extra" $50 marked as "TOWARD PRINCIPAL ONLY," to make certain your funds go where you intend them to go.
BC Investor
I would think that if the min payment covers interest, then the extra amount will only go to principle. Just give them a call and make sure. Is there excess interest every month?

Tim
www.college-investor.com
pricespector
I'm with Citibank, and their policy is:

Q. How will my payments be applied?

A. We are authorized to apply all payments to any late charges accrued, then to interest due, and the remainder to the principal balance. If you send in more than the minimum amount due, the extra amount will be applied toward your next payment that is due. For example, if your monthly minimum payment due in February is $50, and you submit an online payment for $150, we will credit your account for the February, March and April payments ($50 + $50 + $50 = $150). Your next payment due will be in May. You may check “Apply Extra Toward Principal” when making your online payment, which will not advance your next payment due date.
joseph6
Hello,

You may check debtxfactor.com my friend suggests me this site which provide me good support.


Good Luck
tourgolf
If you send the payments by check, you could always send two checks, one for the monthly payments and the "extra" $50 marked as "TOWARD PRINCIPAL ONLY," to make certain your funds go where you intend them to go.

That's probably the best advice right there...that way they don't confuse you paying an extra payment a month in advance and they put the $50 directly to principal. Keep making those extra principle payments...it will save you a bunch in the long run.