NRGie
10-26-2015, 10:41 AM
I called the NSLSC (federal loan provider) and they weren't able to answer my question very clearly.
So from what I gathered online, any payment you make before your grace period ends will be applied to your principal, minus the interest accrued during your grace period.
And any lump-sum payment made after your grace period will be applied towards the interest first. My question is how much goes towards the principal?
The lady on the phone told me that my loan charges about $1.25 interest daily, depending on what the interest rate is for that month (floating). So if I make the minimum payment of $100 does $37.50 go towards the interest for that month and the remaining $62.50 go towards my loan? And if I make a lump-sum payment of $500, will that whole amount go towards my loan since the interest will have been paid from the minimum payment?
When I used the federal loan calculator, it said that I would be charged about $3000 in interest by the end of the 10 years, so If I make lump-sum payments does that payment go towards paying down the $3000 first or does it just pay off what ever interest I currently owe and the rest goes towards the principal.
Thanks
So from what I gathered online, any payment you make before your grace period ends will be applied to your principal, minus the interest accrued during your grace period.
And any lump-sum payment made after your grace period will be applied towards the interest first. My question is how much goes towards the principal?
The lady on the phone told me that my loan charges about $1.25 interest daily, depending on what the interest rate is for that month (floating). So if I make the minimum payment of $100 does $37.50 go towards the interest for that month and the remaining $62.50 go towards my loan? And if I make a lump-sum payment of $500, will that whole amount go towards my loan since the interest will have been paid from the minimum payment?
When I used the federal loan calculator, it said that I would be charged about $3000 in interest by the end of the 10 years, so If I make lump-sum payments does that payment go towards paying down the $3000 first or does it just pay off what ever interest I currently owe and the rest goes towards the principal.
Thanks