Here’s how 30-year fixed-rate loans compare to shorter terms. And as with any loan, the longer payment period generates much larger interest costs. Lenders charge a higher interest rate precisely because payments are spread out for 30 years. However, we encourage you to continue paying as much as you can, because interest may continue to accrue on your outstanding principal balance.Due to the longer payment duration, interest rates in a 30-year mortgage are often higher. If you are not required to make a payment this month, you won’t be considered past due if you don’t make a payment or pay less than your regular monthly payment amount. You can always pay more without penalty, which will reduce your total cost of borrowing and save you money in the long run. If you receive a statement for $0 due, it may mean you have paid extra in the past that fully covered this month’s payment amount, or your current repayment plan requires no payment at this time or you are just entering repayment and no payment is due at this time. Under these plans, your payment is based on your income. Income-driven repayment plans can be a viable solution for reducing your regular monthly payment amount, in some cases even making your monthly payment amount as little as $0 a month. Department of Education does not assess late or returned payment fees. You may reduce this extra cost by paying more than your current amount due to cover the amount of your outstanding fees*. This reduces the amount of your payment applied to your principal balance, which could increase the total cost of your loan. ![]() If fees* have been assessed to your account, when you pay your current amount due, which includes the outstanding interest and principal balance, your payment is first applied to your interest and fees* and then to your principal balance. If you are charged fees*, they are not included in your current amount due. Returned payments may be assessed a $5.00 fee (if applicable)*. ![]() Costs can include, but are not limited to, attorney fees and court costs. We may also charge certain reasonable costs incurred in collecting the loan. ![]() Your late fee (if applicable)* is calculated based on the unpaid portion of your regular monthly payment amount. If you make your monthly payment online, you're able to submit a single payment for all of your accounts.Īny payment not received within 15 days of the due date may incur a late fee (if applicable)* of up to six cents for each dollar that’s late, as described in the terms of your promissory note. IMPORTANT: If you have both Department of Education-owned (account number starts with E) loans and loans owned by other lenders (account number starts with D or J), you must send your payments separately to the address on the front of your statement to have them applied correctly to your loans. You can call us anytime to request that we align the due dates on all of your loans to a date between the 1st and 28th of each month. Log in to your account to view your most up-to-date account information. If you have multiple accounts, it's possible you may have different due dates. ![]() For more information on your monthly billing statements, visit Statement Overview. Your monthly statement and account will show your current amount due and due date for that account. We send you your monthly billing statement for each account about three weeks before a payment is due.
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