Student Loan Due Date

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.

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One response to “Student Loan Due Date

  1. when you overpay you need to tell them to apply the extra amount to your capital/total amount due. you must specify or they’ll continue doing what they did to you. basically paying your payments in advance which what you really want is for them to apply to the amount you owe and reduce it, therefore reducing the amount of interest. of course they don’t tell you that though… i learned it the same way. you have to just specify next time :)

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