Page 1 of 1
If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 4:21 pm
by jd20132013
Should I apply the payment to interest or to the principal?
Is there a good topic on TLS that describes these matters?
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 6:26 pm
by 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.
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 6:29 pm
by 09042014
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.
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 6:35 pm
by 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)
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 8:01 pm
by MinEMorris
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 9:14 pm
by Pokemon
Principal cause students loans are not compounding.
Though interest is tax deductible? Right??
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 10:05 pm
by Mick Haller
Any excess payment to your student loan will automatically be credited to principal.
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 10:07 pm
by 09042014
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.
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 10:42 pm
by Cobretti
Pokemon wrote:Principal cause students loans are not compounding.
Though interest is tax deductible? Right??
What? This isn't for real right?
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 10:50 pm
by AllTheLawz
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.
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 11:07 pm
by lukertin
fed loans compound daily.
write that check out to obama
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 11:08 pm
by Danger Zone
lukertin wrote:fed loans compound daily.
write that check out to obama
They accrue simple interest daily. Check you personal finance terms.
Re: If I want to use some surplus money to pay down my loans
Posted: Fri May 03, 2013 11:13 pm
by lukertin
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