How are payments allocated? 

When you make a loan payment, it's applied in a specific order. First, any fees or charges are covered. Next, the payment is applied to outstanding interest. Finally, the remaining amount goes towards reducing your principal balance. If you're considering making a payment that's different from your scheduled amount, understanding this order can help you plan effectively. If you need to make special payment arrangements, you can give us a call to discuss your options.

If you pay more than your current amount due: 

• • Extra payment amounts (any amount higher than the current amount due) will be applied to your loan(s) with the highest interest rate. 
• • Once the loan with the highest interest rate is paid in full, any extra payment amount will be applied to the next-highest interest rate loan.
• •  If two or more loans have the same highest interest rate, extra payments will be applied to the loan with the lowest outstanding principal balance.

If you pay less than your current Up-to-Date Account

• •  If your account is up to date, partial payments (any amount lower than the current amount due) will be applied to your loan with the lowest current amount due. 
• •  If two or more loans have the same current amount due, any remaining partial payment will be applied to the loan with the highest interest rate.

Delinquent Account:

If you're making a partial payment on a delinquent account, it will be applied to the loan that's most overdue. This helps bring that loan's delinquency status more in line with your other loans.

• • Any remaining partial payment will be applied to the loan with the lowest regular monthly payment amount.
• • If two or more loans have the same regular monthly payment amount, any remaining partial payment will be applied to the loan with the highest interest rate.