 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: What Is a Rollover Loan?\n------------------------\nSome payday lenders will offer a rollover or renew feature when permitted by state law. If the loan is set to be due soon, the lender allows the old loan balance due to roll over into a new loan or will renew the existing loan again.\nThis way, the borrower would pay only the fees while the due date for the larger loan balance is extended to a future date. This gives the borrower more time to repay the loan and fulfill their agreement. But it also means racking up big fees if they continue in the cycle. END