Once we allocate a payment to a specific loan, payments are applied based on the terms of each loan's Promissory Note, usually first to Unpaid Fees, then to Unpaid Interest, and then to Current Principal. This is called the "waterfall".
As the borrower, you have the option to dictate how you would like your payments applied if you choose to partake in manual payments. Manual payments can be made both online or over the phone with one of our agents.
Principal: This forces the waterfall to be principal first. Note that this won’t impact dueness or monthly scheduled payments.
Principal payment option allows you to pay-off your loan faster over-time and initially decreases the principal loan balance with each payment.
Principal payment option allows you to pay-off your loan faster over-time and initially decreases the principal loan balance with each payment.
Installment: This forces the waterfall to be interest first. Does impact dueness.
Installment payment option allows you to satisfy the interest first that has accrued over-time and the remainder balance will be applied to your principal balance. It ensures that all interest fees are covered for the month.
Installment payment option allows you to satisfy the interest first that has accrued over-time and the remainder balance will be applied to your principal balance. It ensures that all interest fees are covered for the month.
Overpayments: Any amounts paid over and above your installment amount.
Overpayments to the installment amount due are applied to principal by default, but if you'd like to apply it differently (for example: applied to future installments), you can give us a call and we can apply it in whatever preference you choose.
Auto-payments are considered installment payments. If you wish to make extra payments on-top of your auto-pay deduction, you can manually make principal payments online or via telephone at 1 (844) 727-2684.