I took out my first loan for my last semester in College. (numbers are just made up, but reflect a similar situation.)
| Principle | Interest | What I Paid | |
|---|---|---|---|
| Initial Loan | $5,000.00 | N/A | N/A |
| First Statement | $5,000.00 | $350.00 | $2,000.00 |
| Second Statement | $3,350.00 | $200.00 | $3,550.00 |
| Third Statement | $70.00 | N/A | WTF?! |
Ok, maybe the interest accrued over time goes toward the principle…understandable.
Or, maybe there’s a penalty for paying all of it early…understandable.
BUT…Before I made my second payment in full, called up Sallie Mae to ask that if I paid ALL of it, I’d be done. The guy said yes, the next thing I should be receiving is a statement that my account will be closed since I paid in FULL.