Sorry if this has been asked before, I tried searching for this question but could not find it. I will try to keep this as simple and straightforward as I can.
I am repaying my student loans. This month I owe $95 as my minimum payment. I want to pay an extra $105 towards the loan with the highest interest rate. I applied the extra $105 towards that loan and Navient gave me two options for my billing direction. Here's what it asks me:
"You made a payment that is equal to or more than the amount of future monthly payments - do you want to be billed for your full Monthly Payment Amount? (Note: We'll always apply your Overpayment toward your Current Balance.)"
Option 1: "No, Advance my due date by the number of payments I cover. Even if you have zero amount due on your billing statement, continuing to make payments will reduce your total cost of borrowing."
Option 2: "Yes, Bill me for my full monthly payment. You will be required to make a full monthly payment with your next billing statement."
I read that I should be paying towards my principal, I'm not sure which of these two options does that. I need a ELI5 on this. Thank you in advance.
Submitted May 10, 2018 at 06:59AM by Leon_JDM https://ift.tt/2G3TfGn
