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Hello,
Problem: MY student loan repayment has been transferred to MOHELA ( I have only made on payment, so this is very recent). My loan amount has increased slightly and my principal to interest ratio has just been criminalized. I am paying $6 to principal and $291 to interest, where previously I was paying approximately $100 to prinncipal with my previous companies servicing my loan.
Here is the chronological events that have led to my distress:
My loan amount through MOHELA was bumped to $297.xx per month right out of the chute. I inquired about this and received a copy&paste response from MOHELA explaining that the loan had been recalculated and the amount I was previously paying was incorrect. The deadline came and I paid the amount to avoid any type of action from this company, since I already had questionable trust in their methods. This morning, I logged in to see that my due date had changed and been bumped up by half a month, so I'm glad I logged in or I would have missed a payment since I received no communication about this change, but I digress.
I looked at my previous payment history (only one month), and I saw the following:
Most Recent Payment
Order in Chart: Date, Total Paid, Principal Paid (6.11), Interest Paid (291.82)
09/16/13 |
$297.93 |
$6.11 |
$291.82 |
I am not sure, which is why I am seeking advice, why and how this company felt that I needed to pay them all interest and not put any more than $6 toward my principal amount. I was under the impression that my interest rate was locked in and the term of my loan was to stay the same. For this reason, I cannot mentally justify how three other loan servicers never recalculated my loan and my principal payment stayed the same. As soon as I switched to this company, it was me seemingly getting screwed over time after time to date.
I have tried to cal the company and get nowhere. Same canned responses and I have received multiple times through email as well. They are hesitant to provide me with the amoritization details for my loan, which makes me worry.
My question is: can someone please help me understand how this can happen? Is it legal? Do I have any good way to combat this? I'm not sure how my loan could change this much for the negative when I have made ALL payment on-time and have NEVER missed a single one.
Please, any help of info would be beyond appreciated. I am in need of help. Any you could provide is helpful!
Thank you!
-Matt
UPDATE:
I forgot to include my previous numbers. Through EDGEucation Loans, I was paying $282 and change. Approximately $86 dollars of this went toward the principle. For this reason, I fail to see how it is justified to knock up my interest payment and take away so much of my principle.
If they are right and interest wasn't being assessed properly, it would make sense for your first few payments to go towards the back interest that should have been charged and paid in the first place. That said, this is the first time I've heard of this. At least with Sallie Mae I can print a payment plan that is essentially an amortization table, can you do that with Mohela? Do you still have access to your account with the previous lenders? If so, I would print and compare those documents. Also, see if you can find any documentation that shows what the interest rate was supposed to be/what it actually was charged at with each lender and then compare your payment amount to what you would expect using an online loan calculator. That might help you narrow down what happened.
If you can't get Mohela to help you out with this, then I would contact the Student Loan Ombudsman and tap them to help you investigate what happened here and what action should be taken.
If you're not getting an answer that makes sense from the first level of customer service, it is perfectly reasonable to ask for a supervisor. Any customer service agent at any organization is there to explain the details and correct any errors that may have occurred. If they can't get you satisfactory info, their supervisor should be able to...