Changes to PenFed SSL??

[scratchpad]

I just received this email from PenFed about my SSL:

Dear [FIRST LAST],

We're writing to let you know about an upcoming change to how extra payments are applied to your loan.

Your loan ending in [XXXX] is currently paid ahead, meaning your next payment is not due until [MONTH DD, 2035]. No payment is required at this time. However, please note that interest continues to accrue daily on your outstanding loan balance.

What's changing?

Effective 1/7/2026, PenFed will limit the number of days a loan can be paid ahead.

- You continue to have the option to make payments on your loan. Any payments you make between now and [MONTH DD, 2035] will be credited to accrued interest and insurance (if applicable) before being applied to your principal balance and will not advance your next due date any further into the future.

- After [MONTH DD, 2035], any payments made to your loan in excess of your scheduled monthly payment will not advance the due date more than 60 days beyond your regularly scheduled payment date.

This change does not affect your loan rate, term, or your ability to make additional payments.

I don't really understand what this means for me or my SSL loan. I did the SSL trick and paid it off to 8% immediately. My next payment isn't until 2025. I'm planning on paying $1/month via autopay just to keep reporting payment activity.

[DoppelgangerD]

Looks like Penfed is screwing over all new applicants by not letting them pay more than 60 days ahead.

Looks like I gotta find a way to get into NFCU to get the SSL, unless they nerf theirs too.

🙄

[Thomas_Thumb]

Given you have an existing SSL already paid ahead, you should be fine. It looks like the loan is good until 2035. Consider quarterly payments vs monthly. Why do you need to look for something else at this time?

[FicoMike0]

In glad I got mine when I did. The intended purpose of the loan, paying to borrow your own money, is dumber than layaway. Still, a lot of cus have them. Only navy and pen have let you pay down the balance without shortening the term. Now, is just navy. I'm not surprised they did this, they never advertised the ssl, you had to ask.

[Patient957]

"Effective 1/7/2026, PenFed will limit the number of days a loan can be paid ahead."

This sounds like they are effectively nerfing the SSL for new applicants.

Sounds like they are not nerfing existing loans.  But folks may want to consider whether they want to stop making small monthly payments, as it sounds like it could slightly shorten the term.

Glad I took the max 142 month term.

[FicoMike0]

@Patient957 , good choice!

I went 84, but then, I'm 70+, I'm hoping to outlive my ssl.

I only pay $2 twice a year, just to keep the balance from creeping over 9%. To make it easy to remenber, I pay on new years and summer solstice days. I originally planned to do monthly autopay. Then I read that pen sometimes forgives loans early when the balance is less than $50. Nice of them, but if I paid 2.42 a month, my balance would drop below $50 20 months early. So, I'll be paying $25 a month, starting sonetime in 2030.

[TrapLine]

---

@FicoMike0 wrote:

@Patient957 , good choice!

I went 84, but then, I'm 70+, I'm hoping to outlive my ssl.

I only pay $2 twice a year, just to keep the balance from creeping over 9%. To make it easy to remenber, I pay on new years and summer solstice days. I originally planned to do monthly autopay. Then I read that pen sometimes forgives loans early when the balance is less than $50. Nice of them, but if I paid 2.42 a month, my balance would drop below $50 20 months early. So, I'll be paying $25 a month, starting sonetime in 2030.

---

You could use the money for products related to old age 

[FicoMike0]

The only thing good about old age is it beats the alternative. Just remember, when they tell you the average life expectancy is 75, that means only half of us make it that long. 

the only product I can think of ive added in my old age is an upgrade from bourbon to cognac. 

[Thomas_Thumb]

I miss my cognac, other well aged brandies and single malts. I accumulated a wonderful collection over the years hoping to relax and enjoy during retirement. Now I'm retired but heart health concerns have derailed that plan.

I should find new homes for my stash which includes an unopened bottle of 1975 MaCallan 18 single malt. Purchased it for $100 on release in 93'. Average asking price for that vintage today is $3500.

@FicoMike0 

I'm a bit envious of your situation MikeO. If you want some suggestions on great brandies to consider, send me a PM. In addition to cognac, there are plenty of great tasting, smooth armangac, calvados, spanish brandies and a few wonderful American brandies as well. Many, especially Spanish, are value priced.