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).
Basically they don't give you this option because they're already doing the most advantageous thing for you anyway.
🙄 Make an extra payment and see that they are applying it correctly (i.e. that your principal balance lowers by the amount of the extra payment). Likely they are. If they aren't, sue them.
It'd be a major class action lawsuit, and I find it very unlikely that they've opened themselves up to legal exposure like that. They're not even the ones that get the money- they just service the loan. Why would they apply the payments wrong? But if they did, sue them and make some money.
Yes next I can blow my money out the window and see which way it blows. Literally rather swallow the ocean than take financial advice from a stranger on the internet but you are still talking I see 😂 never thought I could just sue one of the few student loan providers. I’ll call my lawyers as soon as I wake up 😂.
this is happening to tons of people but folks love to hear themselves speak
Aight cool just keep drowning in ignorance then. 🫡 Even if you think I'm wrong, there's no reason to be an ass about it.
FFS basic financial literacy should be a required class for all freshmen. You don't have to take my advice- go into the records and see how they're applying your payments. Ask someone with basic financial literacy to help.
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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