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

[jd20132013]

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

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

[joetheplumber]

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]

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

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

Principle.

[ManOfTheMinute]

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]

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

[Pokemon]

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

[Mick Haller]

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

[09042014]

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.

[Cobretti]

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

What? This isn't for real right?

[AllTheLawz]

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.

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]

fed loans compound daily.

write that check out to obama

[Danger Zone]

fed loans compound daily.

write that check out to obama

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

[lukertin]

fed loans compound daily.

write that check out to obama

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

lol you'r eright