Fedloans ..calculating interest WRONG.

[Anonymous]

So I completed rehab in Oct, Fedloans began servicing my loans Oct 12. Since then I have been making 2 payments a month, one they auto debit so I can get interest rate reduction, and another I make online after the first payment posts so I can further reduce my principal. In 73 days they have charged me 2X the interest I should have been charged. Their SUPERVISOR told me the extra interest is related to when my loans were in DEFAULT.

Wouldn't any fees, interest have been capitalized prior to completion of rehab? Isn't the rule payments are applied to fees, interest, then outstanding principal?

Am I understanding this wrong?

[SCF]

When you say they've charged you too much interest, do you mean that each month an incorrect amount is accruing, or that they have applied too much of your payments to oustanding interest.  I would ask for (or find on the website)  a detailed loan statement that outlines how much interest is accruing each month as well as any previously accrued but still outstanding interest and fees.  It will be easier to figure out what is going on with an exact breakdown to reference with the rep.  It is possible that they did not capitalize some or all of that interest coming out of rehab, and it really is to your benefit that they not capitalize it, otherwise you would be paying interest on your accrued interest.

[Anonymous]

More interest is accruing each month. As a result more of my payment is being applied to interest.