Related topics. Sallie Mae does not provide, and these materials are not meant to convey, financial, tax, or legal advice. Sallie Mae makes no claims about the accuracy or adequacy of this information. Consult your own attorney or tax advisor about your specific circumstances.
Reproduction without explicit permission is prohibited. External links and third-party references are provided for informational purposes only. Sallie Mae cannot guarantee the accuracy of the information provided by any third parties, and Sallie Mae assumes no responsibility for any errors or omissions contained therein. When a student loan borrower sends in a payment to their lender, the payment is applied to the principal balance only after it is applied to the interest.
If a borrower sends in more than the scheduled payment each month, the excess is usually applied to the principal balance, leading to the loan balance decreasing faster and faster each month. However, you should confirm with your lender on where an extra payment will go. Some lenders will apply it to a future payment. Making extra payments will lead to the loan being paid off before the scheduled repayment term ends, effectively shortening the life of the loan and the total amount of interest paid.
For the first month, the payment would be applied as follows:. Paying the interest as it accrues each month while you are still in school and during the six-month grace period will keep the loan balance from increasing. When the repayment period begins, there will be no unpaid interest to be capitalized, and the required monthly payment should be lower. A shorter repayment period always results in less total interest paid over the life of the loan.
The standard repayment term is 10 years for Federal Direct Loans, but borrowers may be eligible to choose repayment terms as long as 30 years.
The repayment periods for private loans vary and are set at the time the promissory note is signed. There are no prepayment penalties on student loans. Lack of penalty allows borrowers to make extra payments on their student loans without having to pay any extra fees.
Making extra payments reduces the loan balance, so that more of each payment is applied to the principal than to interest. It also pays off the loan quicker, reducing the total interest paid over the life of the loans. The ChangEd app could help you pay extra on your student loans.
The app links to your student loans — both federal and private — and puts extra money towards your student loan balance. Read our full review to learn how it works. The total amount of interest paid may be reduced by refinancing the loan at a lower interest rate. But there are many lenders who will refinance private student loans.
You do not have to begin making payments until your grace period ends. How Much Can I Borrow? Division of Enrollment Management.
You may receive a deferment if you are enrolled in school at least half-time or for unemployment or economic hardship. There is a 6 month grace period that starts the day after you graduate, leave school, or drop below half-time enrollment. Personal credit report disputes cannot be submitted through Ask Experian. To dispute information in your personal credit report, simply follow the instructions provided with it. Your personal credit report includes appropriate contact information including a website address, toll-free telephone number and mailing address.
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