ACS Student Loan- Principle & Interest

[CreditWarrior21]

Hi All,

I'm hoping you can help me. I currently have a student loan with ACS. This is paid as agreed and I actually send additional money against the loan every month. That's where my question comes in.

After I pay my scheduled student loan payment shouldn't anything additional be applied to the principle? This month I sent an additional $300. When I went back and looked at my account I noticed that $139.84 was applied to INTEREST and $160.16 was to PRINCIPLE.

I sent an email requesting information as I would like ALL additional to be applied to principle. I recieved an email back stating that interest accrues daily and that is why the $139.84 went to interest.

I sent a 2nd email stating that there is NO WAY $139.84 is THREE DAYS worth of interest. And asked them again to advise.

Do any of you have expereince with this? Is there a way to ensure that additional payments get sent to principle only? I am trying my best to pay this down as fast as I can.

Any thoughts are appreciated.

[CreditWarrior21]

Bump

[SCF]

Student loan servicers are required to apply your payments first to any accrued interest and fees, then to the principal balance of the loan.  When you make an extra payment, most servicers will let you make a selection to either push your next payment due date forward or apply any extra directly to prinicpal and leave the next due date and amount the same.

You should be able to ask for, or download a statement that shows your interest rate and how it is calculated.  I know that Nelnet will generate a statement showing outstanding interest, daily/annual rate and all of that on demand, not sure if ACS does the same.  With that information, you should be able to see how your interest is calculated and why there was so much outstanding interest on your loan.

[CreditWarrior21]

That is very helpfil. Thank you, I will request that document and see what happens. I appreciate the response!