Paying as refund, did i make a mistake?

[dashpt]

Hello every,

 I'm currently in my grace period with some of my loans and forbearance with others all government student loans.  I currently have $3,147 in accured interest and $54,306 in principal. I wanted to pay off the interest before I go into repayment which would begin February of 2015. I just paid $2000 but while i was filling out all the information online a note popped up and said I'm eligible to pay as refund since i'm still within the 120 days of disbursement. It said i will save the most by choosing to pay this way, so i did, I paid the $2000 as refund. Now I'm concerned that, that payment will not go towards the interest owed. Is there anyone who paid this way? what was your experience? My servicer is great lakes.  

[SCF]

Paying as a refund is basically giving some of the principal on the loan back, and it reduces the total amount borrowed.  So no, that payment will not go toward your interest owed, but it will reduce the total interest you owe over the life of your loan as well as change the total amount borrowed as reflected on your loan account and credit report.  If you want it to apply to interest, I would suggest calling Great Lakes on Monday and asking them if they can change how the payment was applied.

[dashpt]

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@SCF wrote:

Paying as a refund is basically giving some of the principal on the loan back, and it reduces the total amount borrowed.  So no, that payment will not go toward your interest owed, but it will reduce the total interest you owe over the life of your loan as well as change the total amount borrowed as reflected on your loan account and credit report.  If you want it to apply to interest, I would suggest calling Great Lakes on Monday and asking them if they can change how the payment was applied.

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Thank you.