What happens if you pay late?
If we receive your payment after the due date on a simple interest loan, less of your payment will go towards paying off the principal balance. This means more of the payment will go towards interest. It will also take longer to pay off the loan than the payment schedule indicates. The payment schedule assumes each payment is paid on the date it is scheduled as due. Late payments may also incur a late fee under your loan documents. If, when we receive a late payment, the total interest charges owed are more than the amount of the payment, the difference is required to be paid. This difference is called an “interest deficit”. The interest deficit is required to be paid before the principal balance can be reduced. Refer to the “Payment Breakdown” box on your monthly informational statement to see your current interest deficit, if any.