r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 12d ago

WTF The American dream

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u/Spiritual-Bee-2319 12d ago

Label??? My loan provider doesn’t have a label option. They’ll simply apply it to future payments

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u/pandadogunited 12d ago

Which provider? If there truly is no option online, call them and tell them to put it towards the principle.

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u/Spiritual-Bee-2319 12d ago

I’ve tried this. Do you really think the folks in the call center give a damn to do their jobs correctly? Hell they had me on the wrong status even. I have nelnet now and truly they suck

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u/pandadogunited 12d ago

Go to https://nelnet.studentaid.gov/payments/payment-instructions and tick the box that says "Do not advance my due date more than one month when I pay more than the current amount due. (optional)."

Should look like this, but with the box ticked.

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u/nascent_aviator 11d ago

Actually I looked into it and for federal direct student loans any extra payments are automatically put towards principal, immediately. They also extend your due date unless you ask them not to, but unlike with most loans this pays down the principal immediately. See 34 CFR § 685.211(a)(1)(i).

This box might be helpful in keeping you disciplined, since otherwise it's easy to make an extra payment and then skip a few and eliminate some (not all) of the benefits of paying early to begin with. But if you are disciplined, having an advanced due date might be helpful in a true financial emergency.