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?

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?

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?