Do prepayments / extra payments go to the principal or interest?

Payments are applied to balances in the following order:

1. All interest accrued [unpaid interest accrued through effective date (date of payment)]
2. Principal balance from past billings
3. Fees, in the following order:

  • Past Due late fees > NSF (Non-sufficient funds) > Check fees
  • Current Due late fees > NSF (Non-sufficient funds) > Check fees 

4. Remaining, unbilled principal balance

Further detail about payment application is below:

Late fees are assessed at 15 days past due.

If two monthly payments are made within the same billing period for a current account, the second payment will be applied to principal.

If multiple partial monthly payments are received within same billing period, payments will be applied in the order listed above (1-4) and spread accordingly.

There is no fee tiering (e.g. if all past due billings have been paid, except for fees, a late fee should not be assessed for unpaid past due fees)

Upon receipt of a payment for a delinquent account, when possible, payments will be spread to bring the account current (e.g. apply to past due interest and principal) before paying late fees (to ensure new late fees are not assessed).

It is strongly recommended to sign up for ACH/auto-pay in your online borrower account (if you haven’t already done so). Paying by automatic payments saves you time and money, plus it supports precise payment management which is optimal if you want your extra payments to apply to as much principal as possible.

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