Friday, April 13, 2012

Frrrustrated!

I got my next billing statement for my student loans today.  I noticed that I owed nothing for one loan and a few random dollars less here and there on others. 

After sifting through a few more bank statements and reading some fine print this is what I discovered...


PRO-RATED ACROSS ALL LOANS!!!??!  #@$*^#%&%^#!


*Sigh*  How can this be?  Wasn't there legislature passed about this not too long ago?  That a lender must allow you to make additional payments towards principal and not spread the payment out or apply it to a future payment?  I recall this happening for car payments and mortgages?  Can anyone shed any light on this for me?

It's not like I mailed in a check with my account number on it.  I used the online payment system that allows you to specify a payment amount for each loan individually.  Spreading out my payments across all my loans means I will be paying more interest, and making payments for longer.

Argh, it just feels like I can't win!

4 comments:

  1. uuuugh that is so frustrating! I could just murder them for you! how sneaky to put that in the fine print, when you were clearly trying to get ahead. Bastards!!!

    I know this would require several cups of coffee and Advil, but could you call them and see if they will reapply it towards principle?? Don't give up the fight. Others are learning from you, you loan pioneer you

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  2. Aaannnnd....if you have it set up for automatic payments from your bank account, they conveniently don't deduct the next month's payments until your "overpayment" is resolved. I absolutely hate it. My strategy has been to just put all the money in savings and then pay off the loans in full. I may pay more interest that way, but then there is less headache, and less ways for AES to screw me over further. I'm not as resilient as you ;-)

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  3. Ay yi yi,

    Bon, I had no idea they did that, but now my bill makes a little more sense. I had ~90 of unpaid interest on one loan. I put $100 extra payment on that loan and saw the rest of my loan payments decrease ~$1. Awesome, one more crummy thing to have to pay attention to. I don't understand how they can do this since each account is separate, and they are unwilling to consolidate them.

    D, Thanks for the encouragement and yes, they are BASTARDS! Absolutely.

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    1. Looks like there's a way to opt out of the paid ahead status and have additional payments be applied directly to principle. It sounds like a pain in the ass process but it's probably worth it. See this reddit thread for additional details.

      http://www.reddit.com/r/StudentLoans/comments/poo0l/compounding_interest_explained_in_laymans_terms/

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