PRE-EDIT DISCLOSURE - I wrote the following while tsar and linkat where discussing the same....it changes nothing what I've said though.
Very curious as to the response coastalrat gets to this last post/question.
I am in complete agreement btw, of leaving out the "you old farts just don't understand....college degree is new high school diploma, etc. It's a knee jerk reaction, and isn't addressing the stated question.
Let's keep this to the question at hand for now at least, rather than throwing various strands of spaghetti at the wall.
He asked a finance question, pure and simple.
The point about 3rd parties taking over a student loan is irrelevant. It's like a mortgage loan. In the years I paid on my house, the mortgage debt was sold at least 5 times to different banks. That didn't change my interest rate, term, or anything.
Please educate me if this is not the same with a student loan. When the debt is transferred, is your rate jacked up or something? Is that what you agreed to initially, knowing it would be sold to someone else?
Another question I have wondered about is whether or not, as with your mortgage, credit card, car loans or many other debts, if you can make prepayments on the principal.
If you can, even the smallest extra amount sent will make a big difference, especially at the begining of the loan.
And to eliminate the "you don't understand again, you're so out of touch" I personally think many people, regardless of age, totally underestimate the power of a single dollar plus coins, foregoing even a small thing, like a beverage other than tap water at a restaurant meal, etc. etc.
At the end of this post, I supplied a link that automatically calculates what would happen to the length of a loan (it says mortgage, but again, doesn't matter) if you were able to scrap coins out of the sofa cushions, forego one meal out, walking instead of uber, leaving a function before ordering another drink, going to one less movie, on and on, per month.
For this example I picked $23 a month (76 cents a day) that is a person could somehow manage put put aside, they would shave an entire year off the end of their loan. That is, if you started doing it at the start of the loan.
Perhaps to someone at the front of the student debt, this sounds so childish (or should I say senile) and stupid. But honestly, it's the way numbers work. If in addition, every time you get a raise, get some random money, find a quarter on the street....that's where it goes. How do you think I paid off a 30 year mortgage in 15 years? I literally every day, put 50 cents into my Star Trek Next generation lunch box, increasing it to a buck a day, then $10 every Friday, then added in half of every raise I got, then collected that money every 6 months and sent it to the principal. I personally would not send in extra every month. Too much room for error on their part. Then, follow up, follow up, follow up.
I know, I know, this sounds sofa king ridiculous, idiotic, provencial, etc.
But I'm not in any debt, and when I had debt for mortgage, big renovations, which in itself added up to many people student debt.
Oh....even if they did apply (which you of course would correct because, as linkat said, you obviously wouldn't be so dumb to not notice the change) kinda so what? They apply it to future payments, the payment goes down, you keep sending the same amount, plus your extra money, the amount goes down more, eventually, if you keep this up, the amount goes to zero...earlier.
A few times when I sent extra principal they would put it toward the future payment, I would immediately notice and have them correct. Ya gotta keep up with it. I remember once the person on the line telling me they don't do that.....yes, you do, and they did.