There are strict federal guidelines on how extra payments are applied to student loans. These rules make it so that all additional payments are used to pay off late fees first (if applicable), unpaid interest second, and then the principal. It stinks, but you will still save a lot if you choose to make additional payments!
On the other hand, some loan servicers have a bit more leniency with applying payments to the principal of the loan.
You can often send them a letter stating that you want all additional payments sent to the principal of your loan. You may also call them and check their policies.
If you haven't done this yet, shoot us an email at firstname.lastname@example.org and ask for our template to send to servicers. It's easy to fill out and will save you even more!
Payments will be applied toward late fees (if applicable), interest and then principal.
The amount that goes towards the principal will vary based on when your due dates are for your normal monthly payment. Applying payments toward interest and principal still saves you tremendously and that is how Changed calculates your savings.