The Verdict on Online Principal Payments to Sallie Mae | I've Paid For This Twice Already... http://www.paidtwice.com/2008/02/21/the-verdict-on-online-principal-payments-to-sallie-mae/#comment-17310 Single Ma Fri, 22 Feb 2008 14:39:39 +0000 http://www.paidtwice.com/2008/02/21/the-verdict-on-online-principal-payments-to-sallie-mae/#comment-17310 I paid off all of my SLs last year. You don't need a special account to save up a certain amount before you send a principal payment. ANY amount you pay over the minimum due will be applied to principal. The important thing is to select the "apply to principal" option. Otherwise, it will automatically treat your payment like an advanced payment by default, so the can charge the same amount of interest. The more principal payments you send (by the way, you can send them as often as you like), it reduces the interest that accrues every month. Using their online interface for principal payments will not cost you a dime. So don't wait, pay extra as soon and as often as you can. You will also notice your next due date will bounce forward as if you made an advance payment, but as long as you selected "principal", it will be applied as such. You can do the same if you mail a payment. Write PRINCIPAL ONLY in the memo line of your check or attach a letter that says extra payments to PRINCIPAL ONLY. I paid off all of my SLs last year. You don’t need a special account to save up a certain amount before you send a principal payment. ANY amount you pay over the minimum due will be applied to principal. The important thing is to select the “apply to principal” option. Otherwise, it will automatically treat your payment like an advanced payment by default, so the can charge the same amount of interest. The more principal payments you send (by the way, you can send them as often as you like), it reduces the interest that accrues every month. Using their online interface for principal payments will not cost you a dime. So don’t wait, pay extra as soon and as often as you can.

You will also notice your next due date will bounce forward as if you made an advance payment, but as long as you selected “principal”, it will be applied as such.

You can do the same if you mail a payment. Write PRINCIPAL ONLY in the memo line of your check or attach a letter that says extra payments to PRINCIPAL ONLY.

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