Here's the most recent statement for one of my student loans that I have been paying on time for last 10 years.
Based on the statement, here's what I understand (let's ignore the decimals):
My original principal balance (the amount I borrowed from HSBC) was $14,889.
My total principal paid to date is $14,360.
Based on my conversation with AESuccess (who took over the loan from HSBC), the outstanding interest from last payment is $21.
And they said there's no penalty for paying it off early.
Based on all this information above, I can pay off the remaining principal ($14,889 - $14,360 = $529) and the interest rate so far ($21), so, a total of $550 and that should close my loan.
What I'm confused by is the "Current Principal Balance" of $9814 - where is that coming from? And how is it different from original principal balance and the total principal I have paid to date.
I asked AESuccess about it, and unfortunately they are also confused about this and I did not get a coherent response about what the difference is. Their suggestion was to write a letter to HSBC and take it from there.
Before I write a letter, I just want to check - am I crazy in thinking that the remaining balance that's left on my loan is $529? What am I missing here?
This is a private student loan, which makes me little more cautious. HSBC has a reputation of doing shady things and I just want to make sure that if my current remaining balance is $529, I just want to pay it off now.
I'm going to send them a letter, but I wish this was more clearer and transparent.