Student loan repayment

Terry Says

You know the saying as you board the plan — use your own oxygen mask before helping others! So first make sure you can afford this extra payment, in case something happens to your health or your wealth down the road.

Second, how you help depends on exactly what type of payment plan they are on. You’ve probably read my most recent columns about how many of those income-based plans will disappear in July next year, to be replaced by plans that will likely require higher monthly payments — though no demonstration of need.

I wouldn’t start messing around with extra payments until they are set up in the new correct plan with their servicer. Then, instead of adding to their monthly payments, which under the current circumstances are likely to cause confusion, I’d suggest a small annual (holiday) gift to each of them, paid directly online to the loan servicer, using their account number — assuming the new loan servicer will accept those payments and direct them toward a principal payment.
Here are some words of advice from LendEdu:

Before making extra payments, check with your loan servicer to ensure they’ll be applied correctly. Many servicers automatically put extra funds toward future installments instead of reducing your principal balance, which won’t help you pay off your loan faster.

To prevent this from happening, select the “do not advance payment” option when making extra payments online. This ensures your extra funds go directly toward your principal rather than pushing your next due date back.

While speaking with your servicer, ask how payments are applied if you have multiple loans—you may need to specify which one to target first. Some servicers also require a written request to apply extra payments to the principal, so it’s best to confirm their process in advance.”

Here’s a link to that full useful article: https://lendedu.com/blog/paying-off-student-loans-early/