ST Alpha - "It’s probably showing the amount remaining according to some kind of repayment schedule. Like if he pays over 20 years, that’s what’s left. " (Reading a Post)

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In response to "The second guy seems to have paid both the interest and the principal. It says he paid $238k towards his principal yet it says it's only gone down" by Krusty

It’s probably showing the amount remaining according to some kind of repayment schedule. Like if he pays over 20 years, that’s what’s left.

Posted by mafic Dec 2 '21, 05:30

I’d be surprised (maybe not too surprised because America is weird) if that was the full amount due if he won the lottery tomorrow.

Responses:

Or could be that the $327k was the initial loan amount, and they made no repayments for like 10-15 years. - mafic Dec 2, 05:36 10
- I think they were paying aggressively. 220k principal and 80 k interest. Now project at 110k and 110k. Unless there are hidden fees, penalties, etc -- nm - VMan Dec 2, 05:38 9
  - If he was making only partial payments and getting hit with fees every month, I could see something like this happening. -- nm - znufrii Dec 2, 05:46 2
    - I guess it could. Like I said the numbers seem wonky with how much principal vs interest they've paid. And then the balance. -- nm - VMan Dec 2, 05:49 1
      - They probably paid down a lot at the beginning but now for whatever reason aren’t paying enough to cover fees and interest so it keeps ballooning. -- nm* - znufrii Dec 2, 05:52
  - That’s my read as well, but it’s vague enough that I have questions. -- nm - mafic Dec 2, 05:41 5
    - Yeah. I mean typically (say mortgage) your paying all the interest up front. This seems wonky. -- nm - VMan Dec 2, 05:43 4
      - What, so if you borrow with a 20 year term you pay 20 years of interest before any principal? That’s weird. -- nm - mafic Dec 2, 06:00 3
        
        A loan payment is generally applied in the following order: fees, interest, principal. -- (edited) - znufrii Dec 2, 06:03 2
        
        Yeah, just making sure it wasn’t some weird American thing. Like your interest is in imperial or something. -- nm - mafic Dec 2, 06:11 1
        
        No, the weird American thing here is that it is almost impossible to have student loans discharged in bankruptcy. -- nm - znufrii Dec 2, 06:14
That's not at all how it reads to me. It says it's a summary of his payments and it uses the word paid which makes me think he paid them that amount. - Krusty Dec 2, 05:34 3
- The first photo says “this is not your payback amount” which makes me think it’s calculating based on a repayment rate. - mafic Dec 2, 05:40 2
  - The first and second photo are not the same person. I'm just talking about the second photo/loan numbers. It doesn't make sense to me. -- (edited) - Krusty Dec 2, 06:02
  - It’s the current statement balance of the loan. The payoff amount would include any additional accrued interest since the most recent statement. -- (edited) - znufrii Dec 2, 05:42
I read it similarly. Like a credit card statement. If you pay minimum amounts it will take 75 years and 4 months to clear. -- nm - VMan Dec 2, 05:31

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It’s probably showing the amount remaining according to some kind of repayment schedule. Like if he pays over 20 years, that’s what’s left.

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