Rehab payments do not change balance?

[Faelynn V]

We have made 7 rehab payments on one of my husbands student loans. I didn't think to look at it before, but the payment remittance coupon they send every month has a summary of the balance on his 2 loans. They are still at the same amount as they were when we started rehab. Is this normal? Will all the payments be applied before the loan goes to a new lender after 9 payments?

[LynnInMN]

Your payments may only be covering the interest. How much do you owe and what are your payments!!

[Faelynn V]

Your payments may only be covering the interest. How much do you owe and what are your payments!!

 

Sorry, late in responding.

 

For the DOE one, the payment is $105 and it looks to be going towards interest and fees. I don't see any reduction in principal.

 

For the other (through Windam for TN Student Assistance), the payment is $113 and looks to be going towards collection costs and the principal. Under interest there is $0 - is this unusual?

 

I had also thought DOE gives back collection fees at the end of rehab; will they just transfer the amount applied to the fees in the rehab payments to the principal?

[LynnInMN]

Your payments may only be covering the interest. How much do you owe and what are your payments!!

 

Sorry, late in responding.

 

For the DOE one, the payment is $105 and it looks to be going towards interest and fees. I don't see any reduction in principal.

 

Without knowing your balance, I cannot tell you anything.

 

For the other (through Windam for TN Student Assistance), the payment is $113 and looks to be going towards collection costs and the principal. Under interest there is $0 - is this unusual?

 

I had also thought DOE gives back collection fees at the end of rehab; will they just transfer the amount applied to the fees in the rehab payments to the principal?

 

The DOE will yes. However with your Windam account,they wil not.

[LynnInMN]

Your payments may only be covering the interest. How much do you owe and what are your payments!!

 

Sorry, late in responding.

 

For the DOE one, the payment is $105 and it looks to be going towards interest and fees. I don't see any reduction in principal.

 

Without knowing your balance, I cannot tell you anything.

 

For the other (through Windam for TN Student Assistance), the payment is $113 and looks to be going towards collection costs and the principal. Under interest there is $0 - is this unusual?

 

I had also thought DOE gives back collection fees at the end of rehab; will they just transfer the amount applied to the fees in the rehab payments to the principal?

 

The DOE will yes. However with your Windam account,they wil not.

[Faelynn V]

Your payments may only be covering the interest. How much do you owe and what are your payments!!

 

Sorry, late in responding.

 

For the DOE one, the payment is $105 and it looks to be going towards interest and fees. I don't see any reduction in principal.

 

Without knowing your balance, I cannot tell you anything.

 

For the other (through Windam for TN Student Assistance), the payment is $113 and looks to be going towards collection costs and the principal. Under interest there is $0 - is this unusual?

 

I had also thought DOE gives back collection fees at the end of rehab; will they just transfer the amount applied to the fees in the rehab payments to the principal?

 

The DOE will yes. However with your Windam account,they wil not.

 

Well, most of the DOE statements are at work, but comparing 2 I have at home: March and July, I see that the principal is still the same - so, the payments are only going to interest/fees.

 

The strange thing is, the Windam contract showed the balance (which they show includes premium and collection costs) as $9285.20 on May 31st. We have made 4 payments of $113... The balance on the Sept. Statement shows $9174.69. Where has the rest of the money gone?? The contract as well as the statement shows $0 for interest.

 

Question- even in rehab, can you deduct the interest you have paid on a SL account on your taxes?