FedLoan Servicing informed me that they have a new requirement to report total debt, including interest that has not capitalized. Previously the amount owed would stay the same until capitalization, but now the loan amount changes monthly.
I'm not sure to trust FedLoan Servicing about this (you know how the servicers are!). Did anyone else notice any irregular balance changes on their credit report(s) or hear about this change?
This is interesting. I haven't noticed a change yet. This could affect manys DTI though for sure depending on the amount of loan tradelines and debt still owed. I'm going to follow for sure and hope that @RobertEG can provide his expertise and clear up the legality of what FedLoan is proposing. Best of Luck and keep us posted!!
Yeah I wouldn't dispute as its not necessarily causing an impact on your scores or DTI? But I am curious as to how this occrred and wish @ RobertEG could shed some light. He seems to have the rule for it all....😎
Ive summoned @RobertEG for everyone
I also have FLS for my loans too, and not received any notification regarding this, and have not seen anything out of character in reporting either.
This may explain why both my wife's and my student loans respectively are showing higher than what the original balance is even though we are on Income Driven Repayment plans. We went through a Ch7 BK and after a 6 month period after discharge the student loans showed back up with our IDR payments but with higher balances. Is there any way to get FedLoan to correct this?