Principle / Interest

[coorslight]

Can I not ask that my payments pay on principle first and interest second?

 

For example say my payment due is $250 and I pay $500 ... shouldnt the interest due at that time come out of the initial $250 and the extra $250 I am paying should go 100% to principle ...

 

May I am not understanding the bills, but it sure seems like they are taking their interest first and then paying on principle.

 

this is for a Federal Direct Loan

 

???

Edited July 17, 2006 by coorslight

[LynnInMN]

Can I not ask that my payments pay on principle first and interest second?

 

For example say my payment due is $250 and I pay $500 ... shouldnt the interest due at that time come out of the initial $250 and the extra $250 I am paying should go 100% to principle ...

 

May I am not understanding the bills, but it sure seems like they are taking their interest first and then paying on principle.

 

this is for a Federal Direct Loan

 

???

 

You can request the additional go directly to principal. However if you are that far behind in inerest, eventually it will capitalize into your loan.

[TxQuiltGirl]

As with any installment loan, your lender will apply your payment to interest first. If you pay more than the scheduled payment and you want it to be applied to interest, you must TELL them that; they aren't mind readers.