Originally Posted by
NMuir
Except that Sallie Mae applies extra payments to interest, not principle
If you know how loans work that makes zero sense. If you look on Sallie Mae's website they'll tell you that interest accrues daily. So unless they're banking your extra payments and applying it towards later, not yet accrued interest (spoiler alert: they're not), any additional amount above the interest portion of you payment gets applied to principal.
https://www.salliemae.com/student-lo...ng-off-a-loan/
Sallie Mae: How To Apply Payment To Principal - Graduating in Debt
Originally Posted by
Pedro4President
Pretty sure all loans are interest first then principal. That's pretty standard across the board isn't it?
Google "Amortization Schedule." Bottom line, your payment is allocated to varying amounts of principal and interest across the life of the loan. You do pay more in interest earlier in the life of the loan, but anything extra above your calculated payment should be applied to principal.