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 payment option allows you to pay-off your loan faster over-time and initially decreases the principal loan balance with each payment.
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.
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.