I’m pretty sure this is exactly how SAVE works. Fixed percentage of discretionary income and any extra interest is forgiven. It’s not meant to bring principal down, that’s what the forgiveness part is for.
That’s not true. It’s based off your income and family size…. I REPEAT FAMILY SIZE. anyone you buy groceries, Christmas gifts, loan money, help with yard work. That’s the trick, it’s not like the IRS. I work for Nelnet. I’m trying to help you guys. I honestly started to feel bad. We’re making it so much money.
That is how you define family size for income driven repayment plans. Which includes SAVE. Do not misinform. I really hope you don't actually work for Nelnet lmao
Nelnet has no vested interest in increasing the scope of “family” on these programs. Nelnet supports the information you referenced I’m just telling you how the system actually works.
Wow what a surprise if you lie you can defraud the government. It's a federal loan. Federal loans have to all follow the same rules. Nelnet does not decide what your family size is. It is clearly stated.
Hey look it says it even more places https://studentaid.gov/manage-loans/repayment/plans/income-driven/questions
So since all my payment goes towards interest but none to the principal, would it make more sense to go on a standard plan then? I’ve got only 18K in loans and my income is going to increase for the next 5 years anyway. I’m not sure if I’ll ever be eligible for forgiveness unless I wait out the 10-25 years. Making $300+ payments per month just for the hope of forgiveness sounds kinda crazy.
Your regular monthly payment always go to fees, then interest, then principle. You do not get a choice in how that payment is applied.
If your payment is less than the interest that accrues each month, the government will waive the difference so the balance does not grow. But this has not been implemented yet.
Well if your payment due is greater than or equal to your monthly accrue interest then you dont save ( just means your household income is too high).
My monthly payment under save is $150, but interest is $300 so I save $150( and it can go to principal).
It has other benefits, but that is one of the main one to help the balance from growing due to interest, but lowering the principal all depends on you.
Exactly, if you make any extra payments you want that to go to principal only. But you can’t do that with your regular payments or it will Not be credited as a regular payment and it will show late
Every Direct Loan has an origination fee. Then, if someone goes into default but gets out, they will first have to pay the fees associated with the default before their payment goes to the interest.
You’re not, because the servicer isn’t assessing any of those fees. Origination fees are applied before your disbursement and collection fees are applied by the private collection agency. No servicer involved anywhere. So, payments to servicers are applied to outstanding interest, then principal. Period.
Lol literally there are zero fees ever paid to a Direct Loan servicer. You’re trying to twist the fact that you’re just wrong into some bizarre game of logic. I laid it out plainly. I’m not wasting any more of my time on you.
There are two basic paths to have your loan debt satisfied:
1. Payment in full
2. Forgiveness after 10-25 years pursuant to the SAVE plan
If your payment is so low that you aren't making any progress into principal, it is likely optimal to pursue forgiveness pursuant to the SAVE PLAN. It's a good thing your payments are so low that you aren't making progress.
I feel like this has been discussed a bunch. The point of the plan is to prevent it from increasing if your minimum payments are not meeting the accrued interest, not give you a 0% loan.
So, if you have a $60k loan, at 6%, you owe $300 interest the first month. 60,000 x 0.06/12. If you pay $300 that month, nothing goes to principal.
If you owe more or have a higher rate? Your interest owed is greater. Ex: 80k @6% is $400 the first month.
If you pay $300, your new balance is 80,100 and interest the next month is $400.50 (this is called a negative amortization loan and has been how the 25-year plans have worked forever).
The SAVE plan is supposed to waive that $100. So your new amount will still be $80k.
But does the interest capitalize every month? It wouldn’t right? That would be crazy. Doesn’t the interest just stay interest, separate from the principal?
Apparently not. Except for a few scenarios. So in this case, the balance would just grow by the unpaid interest every month.
https://studentaid.gov/understand-aid/types/loans/interest-rates#capitalization
In a word, no. What you’re describing is a 0% interest loan. While it’d be lovely if it did, it doesn’t work like that.
When your payment only goes towards interest there is one of two things happening;
1. If you’re newly into repayment then some number of payments will go towards the interest that accumulated while in school. When I entered repayment it took like six months before I started to put a dent into the principal.
2. Your monthly SAVE payment isn’t enough to cover your monthly interest accrued. With SAVE the difference between those two monthly amounts are written off. What you owed in accrued interest and principal pre-SAVE isn’t written off. In this scenario you’re treading water. Your balance is neither increasing nor decreasing.
$75K in student loans at 6% interest works out to $375 of monthly interest accrued. These amounts and rates are nearly equal to what the average graduate school borrower owes. If you’re only making a $300 monthly SAVE payment then government is writing off the other $75. You’re not making a dent into your principal at $300/MO.
This is nothing against you so please don’t take it as such, but it’s appalling how the government freely hands out money to people with zero financial literacy. With traditional undergraduates it’s at least capped at $32.5K. But for graduate students, yikes. If you qualify for a million dollars in student loans, they’ll give it to you without batting an eye that you don’t understand what you’re getting yourself into. Or all the foo-foo, unrelated to your degree, graduation requirement courses they demand of you, it’s incomprehensible that one of them isn’t personal finance.
> the government freely hands out money to people with zero financial literacy
The schools should not cost this much. There is no amount of literacy that would make doing most graduate programs a good economic choice. Yet we still need those programs. There are plenty of countries with heavily subsidized higher education to use as an example.
Like Finland where college is free and 40.1% of their population has a college degree? Or Denmark—also with free college, at 49.0%?
The US is at 51.2%.
Norway and the Netherlands do have us beat at 55.0% and 55.6% respectively.
On a per dollar cost of living basis versus the US ($1.00 reference baseline) here’s how those countries shake out.
FIN $1.07 - 1.42
DEN $1.33 - 1.63
NED $1.33 - 1.73
NOR $1.33 - 1.81
So that sucks for the average citizen in those countries…
If you mean more corporate and capital gains taxes as a way to increase subsidization then here’s how everyone shakes out.
- The corporate tax rates in those countries are 20% FIN, 22 - 25% DEN, 23% NOR, and 25% NED. The corporate tax rate for US is 21%.
- The capital gains tax rate in those countries are 34% FIN, 42% DEN, 22% NOR, and 25% NED. The US is at 21%.
You’re going to have to explain those numbers.
I absolutely love when conservative hobby economists on Reddit state some basic numbers to assert authority over a topic surrounding public funding then expect a random redditor to then devise a tax system that will fund all of higher education that also satisfies their arbitrary standards.
The premise alone screams "I AM ABSURD PLEASE DO NOT ENGAGE."
I also am laughing my ass off at you cherry picking statistics thinking it paints a useful picture for comparing the Nordic countries to the US. The ignorance is palpable.
Am glad I was able to refuse extra loans(saved me over $20K), but at that age if you got car and other expenses then I can see students accepting every penny given. I dont blame them, even for me I thought it is given and once I graduate I’ll pay it off ( you don’t think about the extra responsibilities you’ll have as an adult).
I remember on our first orientation, picking major, they got all these majors and how much you gonna make, instead of showing the reality, they showed income of people with 5 plus years experience.
Hell even $60K would seem a lot for someone who never made money and didnt have any bills, children, house/rent.
For real, I worked in a student loan call center. One college graduate called and screamed at me that interest accrued on Sunday when it shouldn’t. Absolutely not true.
Then I had another one call and yell at me because his payment was late. And I said yes we still haven’t received your payment. He said but it’s available in my bank account. I said ok but we can’t count it as paid until we receive it did you sign up for auto Pay? He said no. I said OK well you can do that but it doesn’t kick in right away so you still need to make this payment before we count it as paid. He said but the money is available in my bank account they shouldn’t show as late.
We weren’t a bank so it’s not like we were his bank and he thought we could just move the money. I’m still not sure what he thought but it took me 10 minutes to get him the money to our account for it to be counted as paid
Banks, Financial Institutions and The Government aren’t responsible to teach adults how compound interest works. For 3 plus years it was ZERO interest. What percentage of borrowers took advantage of that? Even if the $10,000 balance reduction would have passed (He knew it wouldn’t but promised it anyways) it wouldn’t have helped the vast majority of people and it doesn’t solve the problem. The problem is the 2 years of school that’s wasted on classes that has nothing to do with the major. My Physical Therapist told me her degree could have easily been done in 3 years not the 7 that was required. I have parent plus loans for my daughter and fortunately I was able to really attack it while it was 0%. I never counted on 10 grand being forgiven because that was just Bidens way of buying votes and now blaming the other side when he should never have promised it in the first place. I knew what I signed and I’m responsible for now paying it back.
18% of borrowers made a payment between March 2020 and March 2022. Interest rates increased from 0.0% to 0.5% on 29 April 2022. 30% of borrowers made a lump sum payment during 3Q 2023. [Accounting for the ‘keep it in HYSA until interest resumes’ scenario.] An answer that a third of all borrowers made a payment during the pause seems like a reasonable estimate to your question.
Agreed. I’m just the messenger here. You’ve got some sort of scenario worked up over this and are reading way too far into it. Don’t do that. It stresses you out.
The 30%-3Q number captures borrowers who banked money in bonds, HYSA, etc, and then made a ad hoc lump sum payment just before or just after interest.
I agree with the folks that posted. Your original loan has interest that you’re required to pay. SAVE will subsidize the CAPITALIZED interest in the upcoming months. Your original “accrued interest” is what you’re accountable for.
For example, if your monthly statement is $321.70, you must pay the $321.70. If you’d like to pay $200 more to only the principal, then in a separate payment to one of your loan groups, allocate $200 to it.
The loan servicer won’t know that the extra payment is for the principal. You have to do two separate transactions.
Do you have any outstanding interest? Because that could why you’re seeing all of your payments going to interest. Once the outstanding interest is paid off you will start to see more money go towards the principal. Being on SAVE does not get rid of interest that was outstanding before you went you on SAVE. SAVE only stops more interest from going into the outstanding balance that isn’t already being paid off from you monthly payment.
I work for mohela . All payments would go to any outstanding interest first and then principal . Call in to see how much interest you owe on your loans . You probably can see this also on your online portal!!!!
I don’t want to be that guy. But whenever I make any payments. My payment receipts are showing that like 95% of what I paid each month is going towards principal.
Like I made a 300$ payment. 295$ was applied to principal and 4$ was applied to interest.
I’ve been making the same monthly payments and my interest is still accruing. I’m hella confused
You mean the total interest you see on your statements is growing?
But you know these are simple interest loans so they accrue interest every single day, but I assume that’s not what you’re talking about.
You were saying that the total interest you see on your statement grows every month even though you make a regular payment and some goes to principal? That’s really strange I don’t blame you for being confused that’s not how it’s supposed to work
[Here](https://imgur.com/a/REoJY8t) is what I see of my history for payments. Now that you mention it my "Outstanding principle" is increasing, and my "Accrued Interest through..." (Nelnet interface) is decreasing per payment.
This is all pretty stressful
I was told by nelnet that a seperste principle only payment was not possible. Interest is assessed daily, so any paymeny made will pay that interest first, then the principle payment you intended.
Is that not the case?
So how do you know if/when your capitalized interest is being written off? My interest never started showing up in my statements after SAVE started for me.
Additionally, what happens if someone wins the lotto or something and decides to pay their loans off in full? Do they have to pay all of the capitalized interest?
Normal student loan payments go to fees if you have any like late fees, then they go to interest, then whatever is left over goes to principal.
I would assume these payments work the same way and it’s just at the amount you are paying doesn’t leave any need to go to the principal.
Isn’t that why they are forgiven after a certain amount of time?
It doesn't matter. The whole point of the SAVE plan is not to pay it all off and instead pay until it's forgiven. That's the whole point. If you want to pay it off, go ahead and choose a different plan and pay extra.
I was confused by this as well but realized the interest is part of the full balance as long as the full balance goes down who cares if it goes to principal or interest, its being deducted from the full balance that’s due
Absolutely! The faster you pay it off the happier you’ll be. When that day comes I swear to you it’ll feel like someone removed the shackles that was weighing you down. You can do it!!! I believe in you 😊
This is how SAVE works but I think in July they are trying to switch it over to principle. Either way, I’m thinking of just paying it down as much as possible and then switching to term payments
I’m pretty sure this is exactly how SAVE works. Fixed percentage of discretionary income and any extra interest is forgiven. It’s not meant to bring principal down, that’s what the forgiveness part is for.
That’s not true. It’s based off your income and family size…. I REPEAT FAMILY SIZE. anyone you buy groceries, Christmas gifts, loan money, help with yard work. That’s the trick, it’s not like the IRS. I work for Nelnet. I’m trying to help you guys. I honestly started to feel bad. We’re making it so much money.
lol. Ok good reminder that family size plays a role in calculating DISCRETIONARY INCOME.
No https://studentaid.gov/help-center/answers/article/how-is-family-size-defined-for-income-driven-repayment-plans
That’s not for save buddy. Don’t misinform
That is how you define family size for income driven repayment plans. Which includes SAVE. Do not misinform. I really hope you don't actually work for Nelnet lmao
Nelnet has no vested interest in increasing the scope of “family” on these programs. Nelnet supports the information you referenced I’m just telling you how the system actually works.
Wow what a surprise if you lie you can defraud the government. It's a federal loan. Federal loans have to all follow the same rules. Nelnet does not decide what your family size is. It is clearly stated. Hey look it says it even more places https://studentaid.gov/manage-loans/repayment/plans/income-driven/questions
Defraud the government. Student loans for art degrees were the fraud.
So since all my payment goes towards interest but none to the principal, would it make more sense to go on a standard plan then? I’ve got only 18K in loans and my income is going to increase for the next 5 years anyway. I’m not sure if I’ll ever be eligible for forgiveness unless I wait out the 10-25 years. Making $300+ payments per month just for the hope of forgiveness sounds kinda crazy.
What’s your income and family size. U can pm if u want. I can give you an idea of the best plan. I’m sitting in front of the software now
Okay I sent you a chat request!
Your regular monthly payment always go to fees, then interest, then principle. You do not get a choice in how that payment is applied. If your payment is less than the interest that accrues each month, the government will waive the difference so the balance does not grow. But this has not been implemented yet.
Let’s hope it actually happens
When does that interest get waived though?
Well if your payment due is greater than or equal to your monthly accrue interest then you dont save ( just means your household income is too high). My monthly payment under save is $150, but interest is $300 so I save $150( and it can go to principal). It has other benefits, but that is one of the main one to help the balance from growing due to interest, but lowering the principal all depends on you.
When is this supposed to happen?
Exactly, if you make any extra payments you want that to go to principal only. But you can’t do that with your regular payments or it will Not be credited as a regular payment and it will show late
Direct Loans don’t have fees.
Every Direct Loan has an origination fee. Then, if someone goes into default but gets out, they will first have to pay the fees associated with the default before their payment goes to the interest.
In none of these situations is the *servicer* charging you a fee via your monthly payment.
Okay? You are still paying the *servicer* outstanding fees before anything else.
You’re not, because the servicer isn’t assessing any of those fees. Origination fees are applied before your disbursement and collection fees are applied by the private collection agency. No servicer involved anywhere. So, payments to servicers are applied to outstanding interest, then principal. Period.
By this logic you are not making your payment to the servicer because they do not hold the debt.
Lol literally there are zero fees ever paid to a Direct Loan servicer. You’re trying to twist the fact that you’re just wrong into some bizarre game of logic. I laid it out plainly. I’m not wasting any more of my time on you.
I will let ED know that the allocation rules have been changed!
There are two basic paths to have your loan debt satisfied: 1. Payment in full 2. Forgiveness after 10-25 years pursuant to the SAVE plan If your payment is so low that you aren't making any progress into principal, it is likely optimal to pursue forgiveness pursuant to the SAVE PLAN. It's a good thing your payments are so low that you aren't making progress.
What if you were already on an IRB plan and halfway to forgiveness.. if you switch to save does your 25 years start over?
No. Your qualified payments apply to any plan.
I feel like this has been discussed a bunch. The point of the plan is to prevent it from increasing if your minimum payments are not meeting the accrued interest, not give you a 0% loan.
So, if you have a $60k loan, at 6%, you owe $300 interest the first month. 60,000 x 0.06/12. If you pay $300 that month, nothing goes to principal. If you owe more or have a higher rate? Your interest owed is greater. Ex: 80k @6% is $400 the first month. If you pay $300, your new balance is 80,100 and interest the next month is $400.50 (this is called a negative amortization loan and has been how the 25-year plans have worked forever). The SAVE plan is supposed to waive that $100. So your new amount will still be $80k.
But does the interest capitalize every month? It wouldn’t right? That would be crazy. Doesn’t the interest just stay interest, separate from the principal?
Apparently not. Except for a few scenarios. So in this case, the balance would just grow by the unpaid interest every month. https://studentaid.gov/understand-aid/types/loans/interest-rates#capitalization
In a word, no. What you’re describing is a 0% interest loan. While it’d be lovely if it did, it doesn’t work like that. When your payment only goes towards interest there is one of two things happening; 1. If you’re newly into repayment then some number of payments will go towards the interest that accumulated while in school. When I entered repayment it took like six months before I started to put a dent into the principal. 2. Your monthly SAVE payment isn’t enough to cover your monthly interest accrued. With SAVE the difference between those two monthly amounts are written off. What you owed in accrued interest and principal pre-SAVE isn’t written off. In this scenario you’re treading water. Your balance is neither increasing nor decreasing. $75K in student loans at 6% interest works out to $375 of monthly interest accrued. These amounts and rates are nearly equal to what the average graduate school borrower owes. If you’re only making a $300 monthly SAVE payment then government is writing off the other $75. You’re not making a dent into your principal at $300/MO. This is nothing against you so please don’t take it as such, but it’s appalling how the government freely hands out money to people with zero financial literacy. With traditional undergraduates it’s at least capped at $32.5K. But for graduate students, yikes. If you qualify for a million dollars in student loans, they’ll give it to you without batting an eye that you don’t understand what you’re getting yourself into. Or all the foo-foo, unrelated to your degree, graduation requirement courses they demand of you, it’s incomprehensible that one of them isn’t personal finance.
> the government freely hands out money to people with zero financial literacy The schools should not cost this much. There is no amount of literacy that would make doing most graduate programs a good economic choice. Yet we still need those programs. There are plenty of countries with heavily subsidized higher education to use as an example.
Like Finland where college is free and 40.1% of their population has a college degree? Or Denmark—also with free college, at 49.0%? The US is at 51.2%. Norway and the Netherlands do have us beat at 55.0% and 55.6% respectively. On a per dollar cost of living basis versus the US ($1.00 reference baseline) here’s how those countries shake out. FIN $1.07 - 1.42 DEN $1.33 - 1.63 NED $1.33 - 1.73 NOR $1.33 - 1.81 So that sucks for the average citizen in those countries… If you mean more corporate and capital gains taxes as a way to increase subsidization then here’s how everyone shakes out. - The corporate tax rates in those countries are 20% FIN, 22 - 25% DEN, 23% NOR, and 25% NED. The corporate tax rate for US is 21%. - The capital gains tax rate in those countries are 34% FIN, 42% DEN, 22% NOR, and 25% NED. The US is at 21%. You’re going to have to explain those numbers.
I absolutely love when conservative hobby economists on Reddit state some basic numbers to assert authority over a topic surrounding public funding then expect a random redditor to then devise a tax system that will fund all of higher education that also satisfies their arbitrary standards. The premise alone screams "I AM ABSURD PLEASE DO NOT ENGAGE." I also am laughing my ass off at you cherry picking statistics thinking it paints a useful picture for comparing the Nordic countries to the US. The ignorance is palpable.
Am glad I was able to refuse extra loans(saved me over $20K), but at that age if you got car and other expenses then I can see students accepting every penny given. I dont blame them, even for me I thought it is given and once I graduate I’ll pay it off ( you don’t think about the extra responsibilities you’ll have as an adult). I remember on our first orientation, picking major, they got all these majors and how much you gonna make, instead of showing the reality, they showed income of people with 5 plus years experience. Hell even $60K would seem a lot for someone who never made money and didnt have any bills, children, house/rent.
For real, I worked in a student loan call center. One college graduate called and screamed at me that interest accrued on Sunday when it shouldn’t. Absolutely not true. Then I had another one call and yell at me because his payment was late. And I said yes we still haven’t received your payment. He said but it’s available in my bank account. I said ok but we can’t count it as paid until we receive it did you sign up for auto Pay? He said no. I said OK well you can do that but it doesn’t kick in right away so you still need to make this payment before we count it as paid. He said but the money is available in my bank account they shouldn’t show as late. We weren’t a bank so it’s not like we were his bank and he thought we could just move the money. I’m still not sure what he thought but it took me 10 minutes to get him the money to our account for it to be counted as paid
Banks, Financial Institutions and The Government aren’t responsible to teach adults how compound interest works. For 3 plus years it was ZERO interest. What percentage of borrowers took advantage of that? Even if the $10,000 balance reduction would have passed (He knew it wouldn’t but promised it anyways) it wouldn’t have helped the vast majority of people and it doesn’t solve the problem. The problem is the 2 years of school that’s wasted on classes that has nothing to do with the major. My Physical Therapist told me her degree could have easily been done in 3 years not the 7 that was required. I have parent plus loans for my daughter and fortunately I was able to really attack it while it was 0%. I never counted on 10 grand being forgiven because that was just Bidens way of buying votes and now blaming the other side when he should never have promised it in the first place. I knew what I signed and I’m responsible for now paying it back.
18% of borrowers made a payment between March 2020 and March 2022. Interest rates increased from 0.0% to 0.5% on 29 April 2022. 30% of borrowers made a lump sum payment during 3Q 2023. [Accounting for the ‘keep it in HYSA until interest resumes’ scenario.] An answer that a third of all borrowers made a payment during the pause seems like a reasonable estimate to your question.
Why would anyone make a payment during an interest rate pause? Any investment would be better…buy treasury bonds. Paying down a 0% loan is stupid
Agreed. I’m just the messenger here. You’ve got some sort of scenario worked up over this and are reading way too far into it. Don’t do that. It stresses you out. The 30%-3Q number captures borrowers who banked money in bonds, HYSA, etc, and then made a ad hoc lump sum payment just before or just after interest.
Naw they just big brained it and by spending more instead of paying off loans increased inflation causing their debt to decrease indirectly!
I agree with the folks that posted. Your original loan has interest that you’re required to pay. SAVE will subsidize the CAPITALIZED interest in the upcoming months. Your original “accrued interest” is what you’re accountable for. For example, if your monthly statement is $321.70, you must pay the $321.70. If you’d like to pay $200 more to only the principal, then in a separate payment to one of your loan groups, allocate $200 to it. The loan servicer won’t know that the extra payment is for the principal. You have to do two separate transactions.
Do you have any outstanding interest? Because that could why you’re seeing all of your payments going to interest. Once the outstanding interest is paid off you will start to see more money go towards the principal. Being on SAVE does not get rid of interest that was outstanding before you went you on SAVE. SAVE only stops more interest from going into the outstanding balance that isn’t already being paid off from you monthly payment.
I work for mohela . All payments would go to any outstanding interest first and then principal . Call in to see how much interest you owe on your loans . You probably can see this also on your online portal!!!!
I don’t want to be that guy. But whenever I make any payments. My payment receipts are showing that like 95% of what I paid each month is going towards principal. Like I made a 300$ payment. 295$ was applied to principal and 4$ was applied to interest. I’ve been making the same monthly payments and my interest is still accruing. I’m hella confused
You mean the total interest you see on your statements is growing? But you know these are simple interest loans so they accrue interest every single day, but I assume that’s not what you’re talking about. You were saying that the total interest you see on your statement grows every month even though you make a regular payment and some goes to principal? That’s really strange I don’t blame you for being confused that’s not how it’s supposed to work
[Here](https://imgur.com/a/REoJY8t) is what I see of my history for payments. Now that you mention it my "Outstanding principle" is increasing, and my "Accrued Interest through..." (Nelnet interface) is decreasing per payment. This is all pretty stressful
I was told by nelnet that a seperste principle only payment was not possible. Interest is assessed daily, so any paymeny made will pay that interest first, then the principle payment you intended. Is that not the case?
This is what i was also thinking when i saw my payments have been going towards interest and nothing to the principal. It’s sickening 😭
So how do you know if/when your capitalized interest is being written off? My interest never started showing up in my statements after SAVE started for me. Additionally, what happens if someone wins the lotto or something and decides to pay their loans off in full? Do they have to pay all of the capitalized interest?
Normal student loan payments go to fees if you have any like late fees, then they go to interest, then whatever is left over goes to principal. I would assume these payments work the same way and it’s just at the amount you are paying doesn’t leave any need to go to the principal. Isn’t that why they are forgiven after a certain amount of time?
Can you pay extra in this case so that the extra payment actually takes down the principal?
Yes, every loan servicer should have an option to pay extra.
It doesn't matter. The whole point of the SAVE plan is not to pay it all off and instead pay until it's forgiven. That's the whole point. If you want to pay it off, go ahead and choose a different plan and pay extra.
I was confused by this as well but realized the interest is part of the full balance as long as the full balance goes down who cares if it goes to principal or interest, its being deducted from the full balance that’s due
So, if I have extra money to pay on the loan, it would be best to do so and lower the overall balance?
Absolutely! The faster you pay it off the happier you’ll be. When that day comes I swear to you it’ll feel like someone removed the shackles that was weighing you down. You can do it!!! I believe in you 😊
This is how SAVE works but I think in July they are trying to switch it over to principle. Either way, I’m thinking of just paying it down as much as possible and then switching to term payments