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What does it mean to pay extra to principal?

April 26, 2017extra mean pay Principal

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What does it mean to pay extra to principal?

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As long as your account is current, you may send extra money to be applied to the principal balance of your loan at any time. This will enable you to pay off your loan sooner. By bringing down the balance owed you will pay less interest. Any extra funds sent that are less than $5.00 will automatically be applied to the principal balance of the loan, provided there are no outstanding fees to be paid. Extra funds greater than $5.00 must be stipulated in writing as to where they should be applied. This may be done on your coupon, or in the absence of coupons attach a small note.