Regular Contributor
iDShaDoW
Posts: 169
Registered: ‎11-07-2007
Pay off a Specific Sallie Mae Loan?

Sorry if it's been asked before but I haven't been able to find out.

 

Basically over the course of my undergrad degree, I took out loans each semester.

 

When I'm logged into Sallie Mae, it lists them as 1-01 through 1-09.  The interest rates on them vary from 3.4% to 6.8% (6 out of 9 are 6.0% or higher).

 

When I click to make a payment, it just gives me an option to pay towards Billing Group 1-01 which appears to be all 9 loans clumped into one (it shows the "4-day payoff" as the sum total of all 9 loans as well as the accrued interest).

 

Obviously it would be much wiser and save more money on interest in the long run if I could specifically pay down the 6.8% loans, then the 6.0% loans, then the 5.6%, 4.5%, 3.4% loans but the website doesn't seem to be set up in such a way that I can do this.

 

Am I blind and not seeing a way to do so?  Or would I have to call in and speak to someone or maybe write on the memo of my checks that I send to them that I'd like to apply the payment to the principal amount of the loan I want it to?  I can use checks but doing it electronically online would be preferable.

 

---

 

Also, are minimum payments each month determined based on the amount of principal left on the loan?  (ie. can I pay off extra every month for 1-2 years and then completely slow down and pay only the minimum towards the end when I have like $1-2k left on my loans?  This would be done so that accrued interest at this point would be neglible and the installment loan would remain open and continue to age thus not bringing down my AAoA.)  Or is this pointless since I've read that installment loans have very little to no impact on FICO scores?

 

Thanks for reading my novel and any help is greatly appreciated.

Walmart Discover TU08 FICO 08/05/14: 788 AMEX EX FICO 08/21/13: 775 PSECU EX FICO 08/06/14: 782
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SCF
Posts: 1,004
Registered: ‎06-09-2008
Re: Pay off a Specific Sallie Mae Loan?

You'll have to call Sallie Mae about applying extra payment amounts to a specific loan account.  I've never found a way to do that on their website either.  I would probably pay my regular payment online (with auto-debit for the interest benefit and the peace of mind), and then call in every month or two with the extra payment to apply to the loan you're working on.

 

Your minimum payment is determined based on the payment schedule you're currently using, figured when the loan starts re-payment.  So, if you're on the 10 year plan, they figure the minimum payment at what you need to be done in 120 payments.  That minimum does not go down as the balance of the loan goes down, but it DOES go down as you pay off the internal loan accounts.  So, if you have 9 loans, and pay off 1, and the portion of the minimum payment going to that 1 loan was $20, your new minimum payment goes down $20.

 

Hope that helps!

Member
illini10
Posts: 11
Registered: ‎05-23-2012
Re: Pay off a Specific Sallie Mae Loan?

You can call them and have all of the loans seperated so that you can apply payments to specific loans. If you do this, you will have to make a payment on each loan rather than just one consolidated payment.

Valued Member
SenorDragon
Posts: 31
Registered: ‎11-18-2011
Re: Pay off a Specific Sallie Mae Loan?

I've noticed that SM will generally distribute the first payment in given month to cover the minimums they calculated for each loan account. Like you, I like to pay beyond the monthly minimum so with any additional amount beyond the mininum, it automatically asks me how I would like to distribute the remainder, i.e. if my minimum payment is $250 and I choose to pay $300, then they will distribute the first $250 how they see fit to cover the minimums, then I can choose any combination of the individual loan accounts for the remaining $50 to get distributed into. Strange that you can't do that, I figured it was a pretty standard online payment option.

TU 770 (11/18/11)
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Community Leader<br> Established Contributor</br>
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SCF
Posts: 1,004
Registered: ‎06-09-2008
Re: Pay off a Specific Sallie Mae Loan?

SenorDragon, my Nelnet account lets me do exactly what you describe.  But on Sallie Mae's site, the only option I have with the remained is to apply it to principal (rather than pushing out my payment date).  I wonder if perhaps they've got multiple versions of their website, or you have to call in and ask for the option as another poster described?

Regular Contributor
iDShaDoW
Posts: 169
Registered: ‎11-07-2007
Re: Pay off a Specific Sallie Mae Loan?

I haven't actually made any payments on my student loans yet and am still in deferment so I've no idea how it looks and what is allowed or not after going past a certain point in their website process for payments.

 

I got a job offer literally the day after applying for deferment (which was a day before the grace period ended and my first payment was due).

 

Since I'm in deferment, I don't have any minimum payments due until around February 2013.

 

My first paycheck will be for zero'ing out my credit card (gas/food/etc.) and a small loan from my brother so I'll post an update towards the end of the month when I get my 2nd paycheck and what Sallie Mae will or will not let me do.

 

 

Walmart Discover TU08 FICO 08/05/14: 788 AMEX EX FICO 08/21/13: 775 PSECU EX FICO 08/06/14: 782
Valued Member
SenorDragon
Posts: 31
Registered: ‎11-18-2011
Re: Pay off a Specific Sallie Mae Loan?

SCF:

Now that you mention it, I used to get the option to apply additional payments to the principle or push out the payment date. It only provided me that choice if I made more than one payment during a billing cycle after I paid the minimum. For example, since I regularly make two payments a month, the first covers the minimum and any additional principle, but when I made the second it would give me a choice between applying to principle or pushing the due date back. I don't remember getting that option the last few cycles so they may have done away with it.

TU 770 (11/18/11)
EQ 725 (11/18/11)
Established Member
cjd
Posts: 24
Registered: ‎07-05-2012
Re: Pay off a Specific Sallie Mae Loan?

I do it all the time on the website. You click on make a payment, which shows you the combined billing amount.  It gives you the option to pay the amount due or pay a different amount. If you want to pay more, just enter that amount and click next. The next page shows the breakdown of all your loans and tells you that you since you are paying an amount over the minimum due, you have to decide how it is allocated or leave it blank to have them do it for you.



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Valued Member
algorithmslave
Posts: 68
Registered: ‎09-10-2012
Re: Pay off a Specific Sallie Mae Loan?

SenorDragon wrote:

I've noticed that SM will generally distribute the first payment in given month to cover the minimums they calculated for each loan account. Like you, I like to pay beyond the monthly minimum so with any additional amount beyond the mininum, it automatically asks me how I would like to distribute the remainder, i.e. if my minimum payment is $250 and I choose to pay $300, then they will distribute the first $250 how they see fit to cover the minimums, then I can choose any combination of the individual loan accounts for the remaining $50 to get distributed into. Strange that you can't do that, I figured it was a pretty standard online payment option.


Ya that is strange.....My student loans are with Great Lakes. I signed up for auto pay for the .25% interest reduction. GL distributes first to interest than to principal. When I pay extra I make sure it goes towards principal. What I find interesting about these loans is how they are dealt with. The interest on mine accurals daily but capitalizes monthly. Therefore, making a payment forces this loan to recalculate. Therefore, I wonder, if spreading ones payments into smaller everday payments, if it would lower the life of the loan? 

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Frequent Contributor
novabama
Posts: 305
Registered: ‎08-24-2012
Re: Pay off a Specific Sallie Mae Loan?

cjd wrote:

I do it all the time on the website. You click on make a payment, which shows you the combined billing amount.  It gives you the option to pay the amount due or pay a different amount. If you want to pay more, just enter that amount and click next. The next page shows the breakdown of all your loans and tells you that you since you are paying an amount over the minimum due, you have to decide how it is allocated or leave it blank to have them do it for you.


+1 I didn't read all the other posts, but it does allow you to do this, I just looked at it today


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