I have a student loan at a very low percentage rate, so I don’t want to take savings to pay it off. However, I’ve been putting some extra payments here and there and wanted to play with the figures, because it seems silly to keep it for another 12.3 years that my auto-generated loan letter estimates. However, I have trouble understanding how SallieMae arrived at these figures.

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According to their letter here are my current numbers:

Current principal balance $14,348.31

interest rate 2.125%

148 payments of 140.75, starting on 02/02/2013

and 1 payment of $141.06 on 06/02/25

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So, in total 149 month left. However, if I plug it into the bankrate loan calculator

Amount of $14,350 with 2.125% interest rate, if it is to be paid off in 149 months, the monthly payment should be $94.37, not $140.75 as listed by SallieMae.

Even if I assume that I don’t pay a single payment for a year (because I’m not required, each time I send an extra payment they advance my due date, but I just ignore it and keep paying every month) and I will assume that the computer program that generates the letter assumes I won’t make payments if I am not required, than, in that one year I will accrue $305 more in interest... but even if I start repaying $14,655 in February of 2013, over 149 months it would still be $111.99 per month, still far from 140.75. So something does not add up here and it bothers me that I don't understand it.

---------------

According to their letter here are my current numbers:

Current principal balance $14,348.31

interest rate 2.125%

148 payments of 140.75, starting on 02/02/2013

and 1 payment of $141.06 on 06/02/25

---------------

So, in total 149 month left. However, if I plug it into the bankrate loan calculator

Amount of $14,350 with 2.125% interest rate, if it is to be paid off in 149 months, the monthly payment should be $94.37, not $140.75 as listed by SallieMae.

Even if I assume that I don’t pay a single payment for a year (because I’m not required, each time I send an extra payment they advance my due date, but I just ignore it and keep paying every month) and I will assume that the computer program that generates the letter assumes I won’t make payments if I am not required, than, in that one year I will accrue $305 more in interest... but even if I start repaying $14,655 in February of 2013, over 149 months it would still be $111.99 per month, still far from 140.75. So something does not add up here and it bothers me that I don't understand it.

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