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What is an interest credit?


I have been paying a Sallie Mae loan for seven years and realized in September that I had only paid down $900 on a $8500 private education loan. After realizing this I started paying triple the monthly amount I have been paying for the last seven years. Rather than applying the additional funds to the principal balance, I received something called an interest credit, something Sallie Mae/ Naviant says they cannot apply to the balance after payments are applied. In the future I must send a letter with payments over the minimum payment due indicating I want it applied to the principal.

 

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creditcomedy profile image60

Credit Comedy (creditcomedy) says

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2 years ago
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