Although you owe the same amount each month, how your payment is applied can change based on when you pay and if you have any late fees.

When you submit a payment each month, this is how it will be applied to what you owe:

• First, your payment will be used to pay any late fees that are owed.
• Second, your payment will be used to pay the interest you’ve accrued every day since your last payment (see How is the interest calculated on my loan? above)
• Third, what’s left of your payment after paying late fees and interest will be applied to your principal balance.

So, to pay off your principal balance faster, pay on time, avoid late fees, or pay early.