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Nullo's avatar

What should I watch out for after staking a student loan through the heart?

Asked by Nullo (21973points) September 12th, 2012

I have been paying it down in chunks until it was under 1k, and figured that I might as well finish it off. So yesterday I wrote a check for that amount and mailed it, rather than let the loan holder milk the account for interest for a few more months.

Now I’m wondering what kind of grief I should be expecting from them. Any ideas?
I have already identified two potential issues:
1) I put the check in the mail on the 12th, and the deadline is the 14th, and they’re in New York and I’m in Missouri. I’m hoping that the postmark will be enough to settle the matter.
2) The last payment chunk was split between interest and principle, and I had up until now paying the interest through automatic withdrawal. I fear that they’ll take the payment and apply part to the principle, and part against future interest accrual.

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13 Answers

ragingloli's avatar

They will probably try to milk you of every penny of the future interest they lost. Be sure to consult a lawyer if that happens.

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Pandora's avatar

Don’t know. My son called them and got the straight amount owed and sent them a check. It only says 0 balance on his account. I think he got a letter stating that his debt was paid in full. So I guess you get to run around in your skivies yelling Free at last! Free at last!
Just don’t do it out doors. :)
Well unless the check bounces. LOL

tedd's avatar

From what I’ve heard you should be good to go. Most loan companies don’t really try to trick you at the end (again, so I’ve been told). I hope some day to go through that experience, lol.

DrBill's avatar

I paid mine off a few years ago, and have never heard from them again. I had no grief at all once it was paid.

codette's avatar

I paid off one of my two student loans in full right away. I got bills for a $0 balance for a couple of months before they closed it out. For the other one, I have been paying regularly in it, and on my bill they always include a pay-off-now balance as well as the balance if I continue to do regular payments with interest.

marinelife's avatar

Call the bank and talk to someone. Did you loan have any penalties for prepayment? I would not expect the automatic withdrawals to just stop. You need to stop them. Iy may not be in time.

If you have paid over, the bank will refund your money.

wundayatta's avatar

If you are going to pay a loan off early, any loan at all, it seems to me it would be a good idea to call them in advance to find out exactly what it would take to satisfy the loan now. For some loans, this may not be possible. There is a penalty for paying off early. So you want to check for that. In fact, you might want to call just to see what’s happening.

tranquilsea's avatar

First off: Congratulations!

The only thing that I can think of is that you may get a tiny bill for interest if your payment doesn’t reach them by the due date.

hearkat's avatar

I paid mine off early with a lump sum when I got an inheritance, and there were no repercussions. That was close to 15 years ago, though

bkcunningham's avatar

Keep all the paperwork and documentation just in case. (I really just wanted to say congratulations. You should be very proud. Woot woot!!)

Nullo's avatar

Thanks all!

@bkcunningham @tranquilsea Have we found a new developmental milestone? XD

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