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This FAQ consolidates the most common questions about interest, fees, and charges into one place. Each question links directly, so you can share a specific answer with a colleague or consumer.

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How is interest charged? Is it compounding?

Contracts financed through the UGA Finance Program use simple interest, not compounding interest. Interest accrues only on the remaining principal balance, never on interest that has already been assessed. Interest is figured separately for each balance type by applying the daily rate to each day’s balance across the billing cycle:
  1. Daily balance: Start with the day’s beginning balance, add new charges, then subtract payments and credits.
  2. Daily interest: Multiply that daily balance by the applicable daily rate.
  3. Next day’s starting balance: Because this is simple interest, the daily interest from step 2 is not added back into the balance.
  4. Cycle interest charge: Add up all the daily interest amounts in the billing cycle.
Note: Because interest is simple rather than compounding, a consumer’s monthly interest is lower than it would be under a compounding method, which saves the consumer money over the life of the contract. For a worked example, see thePayment Calculator.

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What is the difference between a fee and a charge?

A charge is an amount the consumer has agreed to finance. At origination, the amount financed is a charge. A fee works more like a penalty. There are no fees built into the contract itself, but a consumer can incur one for a late or returned payment. There are two:
Important: Fee amounts and triggers are governed by the consumer’s credit agreement and applicable law. Always confirm current amounts against the active agreement before quoting them to a consumer.

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Can late fees be waived?

In many cases, yes. Whether a late fee can be waived depends on whether the contract is serviced (SRV) or purchased (PUR). To request a waiver for either contract type, submit a case under the consumer’s account.
Important: Confirm the fee in question is actually a late fee. Other charges, such as a returned-payment (NSF) fee, may need to be resolved with the consumer’s financial institution and are not charged by UAS.
Another option for consumers who struggle to pay on time is a due-date change.

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How do additional charges change a consumer’s monthly payment?

When a consumer adds a new charge to an account that has an open line of credit with enough availability and is in good standing (Active – Current), the minimum monthly payment is recalculated. The new payment is based on the account balance plus the new finance amount, minus the already-scheduled monthly payment for the current cycle:
The scheduled payment is subtracted because the current billing cycle’s statement has already gone out; that payment is assumed to be made on time, and the new payment typically becomes due about 25 days after the current cycle closes.
Note: The percentage and minimum dollar amount in this example (3.23% of the highest account balance, or $75, whichever is greater) are illustrative. A consumer’s actual minimum-payment terms come from their credit agreement and charge-slip disclosure. See the full Additional Charges guide (link once published) for sample billing statements.

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When does the new payment amount take effect after an add-on?

The new minimum payment applies starting with the next billing cycle after the charge slip is signed. The consumer will receive a statement showing the new amount before it is due.

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Is there a character limit on the charge slip description?

Yes. Each charge slip description is limited to 255 characters.
  • Additional Charges – New Monthly Payment Amounts (guide)
  • Payment Calculator
  • Consumer Payments FAQ
  • Purchased vs. serviced contracts
  • How Do I Submit Cases?
Last reviewed: July 2026