Envoy or PSA
11-18-2016 | 02:00 PM
#92
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Joined: Sep 2016
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As a line holder, you can easily make more your second year than the first. Scheduled day off (SDO) pay plus critical pay will make us most of the difference. Plus, you will likely be able to upgrade before year 2 ends, so that is additional pay right there.
11-18-2016 | 02:27 PM
#93
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Joined: Feb 2007
Posts: 2,610
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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
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.
https://www.salliemae.com/student-lo...ng-off-a-loan/
Sallie Mae: How To Apply Payment To Principal - Graduating in Debt
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.
11-18-2016 | 02:28 PM
#94
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Joined: Feb 2007
Posts: 2,610
Likes: 15
11-18-2016 | 07:20 PM
#96
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Joined: Feb 2012
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From: CRJ FO
I haven't met many young people who know how to properly budget. Parents don't seem to teach it much and schools certainly don't.
11-18-2016 | 08:28 PM
#97
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Joined: May 2016
Posts: 1,609
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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
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.
https://www.salliemae.com/student-lo...ng-off-a-loan/
Sallie Mae: How To Apply Payment To Principal - Graduating in Debt
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.
11-18-2016 | 11:13 PM
#98
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Joined: Aug 2014
Posts: 279
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Depends. Do you have multiple loans? Or did you have them all consolidated?
If you have multiples, you can just start paying down the interest and the principal on one, while just making the minimum on others (if decreasing principal is your goal).
Last edited by Bravix; 11-18-2016 at 11:24 PM.
11-19-2016 | 03:43 AM
#99
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Joined: Aug 2014
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But student loan interest is tax deductible up to $2500? If you're incurring more than $2500 a year in interest, then yeah, pay it down. But otherwise, you get back at tax season (assuming your federal withholding was >=$2500). Though if you've got nothing to invest the extra cash in, loans aren't bad I suppose.
Depends. Do you have multiple loans? Or did you have them all consolidated?
If you have multiples, you can just start paying down the interest and the principal on one, while just making the minimum on others (if decreasing principal is your goal).
Depends. Do you have multiple loans? Or did you have them all consolidated?
If you have multiples, you can just start paying down the interest and the principal on one, while just making the minimum on others (if decreasing principal is your goal).
But as far as your desire to pay down principal, that still stands if you have multiple loans.
Last edited by Bravix; 11-19-2016 at 04:03 AM.
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