by July 24th, 2010. Filed under: Financial Aid.
Thoughts asked:
I have a student loan (from the government) which I’m trying to pay off as soon as possible. If my minimum payments are $100/month and If I pay double each month, am I prepaying each month or do the excess funds go towards the principal and I liquidate the loan twice as quick?
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I have a student loan (from the government) which I’m trying to pay off as soon as possible. If my minimum payments are $100/month and If I pay double each month, am I prepaying each month or do the excess funds go towards the principal and I liquidate the loan twice as quick?
Create a video blog…instantly.
Filed under: Financial Aid
July 26th, 2010 at 9:40 am
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You will have to determine that by contacting the lender. Some will apply the extra to the principal, but most will automatically apply the extra to the next payment due.
July 27th, 2010 at 3:52 am
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If it’s a government student loan, you should be able to specify that you want any additional money to be applied to your principal. You’ll pay it off more than twice as quickly as you won’t be paying nearly as much interest.