Today while cleaning my room, I was putting away and going through some of my paperwork stuff. I usually open my bills, but pay little attention to the dates on them because I pay everything online. I look at how much is due, basically. For my student loan, I look at how much there is left to be paid off. Today I looked at the date the bill was sent and the due date. 3/27/2009 and 6/16/2010, respectively. I was so confused but thought, maybe since I over pay every month and they expect me to pay this off in x amount of years, my overpaying pushes back the due date, so that it will still be paid off at the same time as if I was paying my minimum. I asked my mom and a couple other people and this was confirmed.
Apparently when you over pay on a loan, your car, your house, etc, it just pushes out the due date because they don’t necessarily want you to pay something like that off early – when you do, “they” don’t collect as much interest. Soo…because I over pay every month, my loan payment is not necessarily due the next month, it is due when the amount I have paid is equal to what the bank thinks I should have paid off at that point in time. Interesting.