This post is of these implementing your student loan fees means and have Great Lakes as your education loan servicer. Our education loan believed professionals have experienced thousands of people maybe not having their costs safely assigned at the High Ponds. For this reason, i have come up with which walk through in order to make sure you optimize your savings.
“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 inserted everything you “right”, the money remained perhaps not applied accurately.”
We hear this each day regarding FitBUX Participants…. thus, what could be good about having Higher Ponds when they disorder up payments?
Financing functions get some things wrong. Yet not, based on our very own sense, Great Lakes’ customer care try hands down the best in the newest student loan business.
Let’s take a step back. When you are make prepayments to save money and pay off your student loans faster, there are 2 critical indicators to make sure you are doing so in an optimal fashion:
Very first, how their prepayments are 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.
Second, understanding how High Ponds can be applied the latest prepayment. Great Lakes does this differently than all the other loan servicers so knowing it is important.
You simply cannot favor how the called for payment was assigned around the your more fund, we.age. you simply cannot incorporate your required payment toward large-attention financing very first.
I am going to assist you how High Ponds is applicable costs playing with a good example. Once the a quick heads up, you might have to reread which several times on account of brand new mathematics. You should take-out a bit of paper and you can draw out a period range….
– You have multiple loans all at different interest rates.
– Your complete called for payment per month try $step 1,100.
– Of the $1,100 monthly payment, $900 is put on remove dominant 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 charging course ends this new 31 th of any few days.
– You pay your required monthly payment on the 30 th of each month, utilising the auto-pay feature Great Lakes offers.
– Your next fee try February 30 th .
– You decide you want to create a good prepayment off $300 towards the March 20th and you want to apply it to your highest interest rate loan first, as this will save you the most money.