If I want to use some surplus money to pay down my loans

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jd20132013
Posts: 997
Joined: Sat Oct 09, 2010 4:41 pm

If I want to use some surplus money to pay down my loans

Postby jd20132013 » Fri May 03, 2013 4:21 pm

Should I apply the payment to interest or to the principal?

Is there a good topic on TLS that describes these matters?

joetheplumber
Posts: 178
Joined: Sat Sep 18, 2010 7:23 pm

Re: If I want to use some surplus money to pay down my loans

Postby joetheplumber » Fri May 03, 2013 6:26 pm

Do they give you a choice? I'm pretty sure all banks/loan companies apply your payment to the interest first, then to principal.

09042014
Posts: 18282
Joined: Wed Oct 14, 2009 10:47 pm

Re: If I want to use some surplus money to pay down my loans

Postby 09042014 » Fri May 03, 2013 6:29 pm

jd20132013 wrote:Should I apply the payment to interest or to the principal?

Is there a good topic on TLS that describes these matters?


Principle.

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ManOfTheMinute
Posts: 1562
Joined: Tue Apr 10, 2012 12:54 am

Re: If I want to use some surplus money to pay down my loans

Postby ManOfTheMinute » Fri May 03, 2013 6:35 pm

If you send them a check for too much money, they do your normal payment, and apply the rest to principle (which is what you want). This shouldn't have to be said, but make sure to pay off the highest interest rate loan first (unless you're in a unique situation)

MinEMorris
Posts: 228
Joined: Sat Nov 17, 2012 12:26 am

Re: If I want to use some surplus money to pay down my loans

Postby MinEMorris » Fri May 03, 2013 8:01 pm

I think this is useful: http://projectonstudentdebt.org/recent_grads.vp.html . Take a look at #7.

Pokemon
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Joined: Thu Jan 12, 2012 11:58 pm

Re: If I want to use some surplus money to pay down my loans

Postby Pokemon » Fri May 03, 2013 9:14 pm

Principal cause students loans are not compounding.
Though interest is tax deductible? Right??

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Mick Haller
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Joined: Mon Mar 28, 2011 3:24 pm

Re: If I want to use some surplus money to pay down my loans

Postby Mick Haller » Fri May 03, 2013 10:05 pm

Any excess payment to your student loan will automatically be credited to principal.

09042014
Posts: 18282
Joined: Wed Oct 14, 2009 10:47 pm

Re: If I want to use some surplus money to pay down my loans

Postby 09042014 » Fri May 03, 2013 10:07 pm

Mick Haller wrote:Any excess payment to your student loan will automatically be credited to principal.


That's actually not true. They credit it to future payments and ass rape you with interest still. Unbelievable but they do it.

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Cobretti
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Joined: Tue Aug 21, 2012 12:45 am

Re: If I want to use some surplus money to pay down my loans

Postby Cobretti » Fri May 03, 2013 10:42 pm

Pokemon wrote:Principal cause students loans are not compounding.
Though interest is tax deductible? Right??

What? This isn't for real right?

AllTheLawz
Posts: 369
Joined: Mon Jun 25, 2012 11:20 pm

Re: If I want to use some surplus money to pay down my loans

Postby AllTheLawz » Fri May 03, 2013 10:50 pm

Cobretti wrote:
Pokemon wrote:Principal cause students loans are not compounding.
Though interest is tax deductible? Right??

What? This isn't for real right?


No, I'm pretty sure that isn't right. They don't compound daily but I believe, for GradPlus/unsub stafford at least, they compound at a certain date. You can pay off interest before that date to avoid compounding.

Desert Fox wrote:
Mick Haller wrote:Any excess payment to your student loan will automatically be credited to principal.


That's actually not true. They credit it to future payments and ass rape you with interest still. Unbelievable but they do it.


I think it might vary by servicer. Mine goes to principal automatically.

lukertin
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Joined: Tue Jun 19, 2012 7:16 am

Re: If I want to use some surplus money to pay down my loans

Postby lukertin » Fri May 03, 2013 11:07 pm

fed loans compound daily.

write that check out to obama

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Danger Zone
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Joined: Sat Mar 16, 2013 10:36 am

Re: If I want to use some surplus money to pay down my loans

Postby Danger Zone » Fri May 03, 2013 11:08 pm

lukertin wrote:fed loans compound daily.

write that check out to obama

They accrue simple interest daily. Check you personal finance terms.

lukertin
Posts: 775
Joined: Tue Jun 19, 2012 7:16 am

Re: If I want to use some surplus money to pay down my loans

Postby lukertin » Fri May 03, 2013 11:13 pm

Danger Zone wrote:
lukertin wrote:fed loans compound daily.

write that check out to obama

They accrue simple interest daily. Check you personal finance terms.

lol you'r eright




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