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No, Student Loan Company
12/07/08
No, Student Loan Company
I have been paying off my student loan faster than the company would like me to, apparently. My next payment due date? August 1st.
August 1st, 2014.
Good Man and I will have been married 5 years by then, and you can bet your kimchi the loan will be paid off completely before my "next" due date.
4 comments
I, too, paid off my student loan ahead of schedule (many years ago!), and I applaud you on your efforts, but there's a logic to the due-date.
To be fair, the loan company had forecasted their earnings based upon the anticipated interest you would have paid had you taken the 'routine' payment schedule. They're entitled to do that, since they loaned you the money.
You ought to investigate, however, if there are any pre-payment penalties. Generally, there aren't since so many people default on student loans, but you would do well to be certain you didn't agree to something like that in the fine print.
To be fair, the loan company had forecasted their earnings based upon the anticipated interest you would have paid had you taken the 'routine' payment schedule. They're entitled to do that, since they loaned you the money.
You ought to investigate, however, if there are any pre-payment penalties. Generally, there aren't since so many people default on student loans, but you would do well to be certain you didn't agree to something like that in the fine print.
12/08/08 @ 08:39
Comment from: Robbin [Member] 
Oh yeah - they want you to pay interest. The second we started paying principle on our house we began to get all kinds of refinance notices. Being out of debt is the best gift of all....
12/08/08 @ 11:22
Comment from: Karen [Visitor]
Actually, you should call the loan company and specifically tell them that you want the payments to be applied to pay down the principal. Otherwise, they basically just mark you as "paid" until Aug 2014 and keep charging you interest on all the principal. They are sneaky that way.
12/08/08 @ 16:47
Comment from: admin [Member]
They apply it to and interest first, then principal. Unfortunately, they won't let me use all of these payments as JUST principal. Yeah, that's written into the loan. BUT, I'm not punished for early payment.
12/08/08 @ 17:15
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