I had a school loan that was handled by EdFinancial. I had made monthly payments on this until there was just about 12 cents of debt left.
[Update:] The payments were a flat amount each month (of something like $50/month because the total debt was not very large). I did not pay the loan of early but just continued on the payment plan for years until the debt got down to the 12 cents.
I am not sure why the payments had not been sized to cover the debt evenly, but perhaps that was not possible because of the accruing interest...
Anyway, my question is about that once the debt was down to 12 cents, the company started charging me 1 cent per month instead of e.g. the entire 12 cents all at once. I had to call them to make the final payment in full.
What is the reason for this sort of system? Where they hoping that they might be able to get me to default if I don't have enough money on the account?