A lump sum payment is a one-time, extra payment that you make to pay down your student loan balance. The lump sum payment can be any amount you choose and is used to reduce your principal balance.
A lump sum loan calculator can show you how much money you can save when you make a lump sum payment for your student loans.
A lump sum and extra payment calculator can be used to show the impact of making a lump sum extra payment on your student loans.
The best lump sum extra payment calculator shows you how much money you will save when you make a lump sum payment to reduce the principal balance of your student loan.
Here is the template that you can use to make a lump sum extra payment:
“I am writing to provide you with instructions on how to apply payments when I send an amount greater than the minimum amount due. Please apply payments as follows:
After applying the minimum amount due for each loan, any additional amount should be applied to the loan that is accruing the highest interest rate.
If there are multiple loans with the same interest rate, please apply the additional amount to the loan with the lowest outstanding principal balance.
If any additional amount above the minimum amount due ends up paying off an individual loan, please then apply any remaining part of my payment to the loan with the next highest interest rate.
Retain these instructions. Please apply these instructions to all future over payments. Please confirm that these payments will be processed as specified or please provide an explanation as to why you are unable to follow these instructions.”
Importantly, remember that lenders pay your interest charges first before they apply your lump sum payment to reduce principal. Also, remember that interest accrues daily. So, it is possible that the amount of principal that is reduced is not equal to the amount of your lump sum payment.
This extra and lump sum calculator is easy to use. Here’s how it works:
The lump sum and extra payment calculator shows you how much you will save on your student loans and how much faster you can pay off your student loans.
You can save significant money on your student loans with a lump sum payment.
You can use a lump sum extra payment calculator to calculate how much money you can save with a lump sum payment.
For example, let’s assume you have $50,000 in student loans at a 7% interest rate. Let’s assume you make a one-time, lump-sum payment of $1,000.
The lump sum loan payment shows that you can save $850 on your student loans and pay off your student loans 3 months earlier.
This lump sum loan calculator can show you how much lump sum payment will save you more money.