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laveetasweeney · Joined: 08 Sep 2010 Posts: 3 1.79 Dollars($)

I was thinking I would set up weekly payments to apply toward the principal on a student loan and continue to make the regularly scheduled payment. I pay half and my son pays the other half. The payments were taken from our accounts prior to the due date. When we received the statement it reflected no payments and indicated we owed two payments and had late fees. I called and was told the system cannot handle partial payments and it takes the system time to combine the two partial payments and apply them as the monthly payment. I changed the date for both payments to be made on the same day nine days prior to the due date. I also set up a weekly payment to make principal payments. The statement reflected receiving this first payment and applied it to the interest. I called to find out how to designate this payment for the principle. I was told by the loan company that interest accrues daily and the payment would be used to pay off that. Is there anyway to make principal payments and avoid paying only the interest in this situation?

smithsussane · Posted: Wed Sep 08, 2010 8:23 pm Post subject:

Hi laveetasweeney!

Welcome to forums!

You will have to contact your lender and check out if you can set up any such plan where your payments would go toward interest as well as principal payments. It will be completely the lender's discretion whether or not he would give you such a plan.

Feel free to ask if you've further queries.

Sussane

laveetasweeney · Joined: 08 Sep 2010 Posts: 3 1.79 Dollars($)

Thank you for the reply. The lender has said that any payments they receive will go to paying off interest that accrues daily. I am not sure i understand why I cannot make principal payments in addition to the monthly payment we make. If I make weekly payments and they pay the interest that has accrued then the interest that is calculated in the monthly payment is applied where? In the state of Maryland we are allowed to pay off loans without penalties prior to the due date. This lender seems to be telling me I cannot make payments toward my principal. Thanks again for giving me more to consider. I appreciate your time.

smithsussane · Posted: Thu Sep 09, 2010 1:42 am Post subject:

Hi laveetasweeney!

Welcome back to forums!

There is no such law which states that you cannot make payments toward your principal amount. You will have to negotiate with the lender in order to set up a payment plan so that a portion of your payments will go towards paying off the principal amount.

Feel free to ask if you've further queries.

Sussane

laveetasweeney · Joined: 08 Sep 2010 Posts: 3 1.79 Dollars($)

Thank you again for you help, I will be making more phone calls.

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