High Ponds Student loans – The good news
Great Lakes Student education loans – What you Do not know Costs Many

This information is of these applying the education loan payment means and just have Higher Lakes as your education loan servicer. Our student loan considered masters have seen millions of people maybe not having its repayments safely designated from the High Lakes. For this reason, you will find come up with this walk through to help you make sure you maximize your offers.

“I called Great Lakes again and they are supposed to be reapplying the payments, again. The last person I talked to said the person I spoke with last week entered everything you “right”, yet the costs were still perhaps not applied truthfully.”

I hear this everyday from FitBUX Participants…. so, just what could well be good about that have High Ponds once they disorder right up money?

Financing properties make mistakes. Yet not, based on all of our experience, Great Lakes’ customer care try hands down the best in this new student loan world.

2 Important factors To make Prepayments

Let’s take a step back. When you are make prepayments to save money and pay off your student loans faster, there are dos important factors to make sure you are doing so in an optimal fashion:

First, exactly how your prepayments was assigned. The different student loan servicers sometimes get this wrong. If they do, it will cost you thousands of dollars over the life of your loans. Read this article for more information on how to pay off student loans.

Next, understanding how Great Lakes is applicable the new prepayment. Great Lakes does this differently than all the other loan servicers so knowing it is important.

Prepayment Allotment

  • Their complete called for payment is the payment you have to make each month. That required payment is split into two parts: an interest amount and a principal amount. The interest amount covers how much you owe in interest each month. The principal amount is applied to your loan principal and reduces your overall balance. Check out this video on how a loan works.

You can’t favor the expected percentage try designated around the your different finance, i.e. you can’t pertain your necessary payment per month to the high-attract mortgage very first.

  • An excellent prepayment is an amount you elect to pay above your required payday loans Illinois monthly payment. The point of the prepayment is to reduce how much you owe at a faster pace. Therefore, you pay less interest in the long-run.

Outlined Example

I am going to guide you just how Higher Lakes can be applied money having fun with a good example. Because the a quick heads up, you may need to reread so it from time to time on account of brand new mathematics. You will want to pull out a piece of papers and extract a time range….

Assumptions:

– You have multiple loans all at different interest rates.
– Your complete called for payment are $1,100.
– Of the $1,100 monthly payment, $900 is actually used on remove prominent while $200 will be used to pay interest. This $900 number is the one you want to remember.
– Great Lakes has a “billing cycle.” This billing cycle ends the day your required payment is due and starts over the next day. For this example, let’s assume that the fresh new recharging cycle finishes the newest 29 th of each times.
– You pay your required monthly payment on the 30 th of each month, by using the auto-shell out feature Great Lakes offers.
– Your 2nd commission was March 31 th .
– You decide we wish to generate a prepayment regarding $3 hundred towards the February twentieth and you want to apply it to your highest interest rate loan first, as this will save you the most money.

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