My loan is out of rehab and back with DLSS, and yesterday I got my PIN so I could go online and check out my account.
While looking at the payments I've made I noticed that, while I made monthly payments of $200, I am only credited for $161.30. The amounts they apply to the principal and interest differed each month too - one month they applied $59 to the principal and $102.30 to the interest, and another month they applied $92 to the principal and $69.30 to the interest. When they got my tax refund of $2500, they applied $100 to the principal and $2400 to the interest!!
Why do the amounts vary each month, and what happened to the other $38.70 I paid???
Full Version: Where did my money go???
QUOTE(dawniedawn67 @ Nov 21 2007, 09:56 AM) 
My loan is out of rehab and back with DLSS, and yesterday I got my PIN so I could go online and check out my account.
While looking at the payments I've made I noticed that, while I made monthly payments of $200, I am only credited for $161.30. The amounts they apply to the principal and interest differed each month too - one month they applied $59 to the principal and $102.30 to the interest, and another month they applied $92 to the principal and $69.30 to the interest. When they got my tax refund of $2500, they applied $100 to the principal and $2400 to the interest!!
Why do the amounts vary each month, and what happened to the other $38.70 I paid???
While looking at the payments I've made I noticed that, while I made monthly payments of $200, I am only credited for $161.30. The amounts they apply to the principal and interest differed each month too - one month they applied $59 to the principal and $102.30 to the interest, and another month they applied $92 to the principal and $69.30 to the interest. When they got my tax refund of $2500, they applied $100 to the principal and $2400 to the interest!!
Why do the amounts vary each month, and what happened to the other $38.70 I paid???
The $38.70 would be collection fees.
Each month your payment would be applied to fees, then outstanding interest and then principal. As your principal went down, so would your interest.
QUOTE(LynnInMN @ Nov 21 2007, 12:10 PM)
QUOTE(dawniedawn67 @ Nov 21 2007, 09:56 AM)
My loan is out of rehab and back with DLSS, and yesterday I got my PIN so I could go online and check out my account.
While looking at the payments I've made I noticed that, while I made monthly payments of $200, I am only credited for $161.30. The amounts they apply to the principal and interest differed each month too - one month they applied $59 to the principal and $102.30 to the interest, and another month they applied $92 to the principal and $69.30 to the interest. When they got my tax refund of $2500, they applied $100 to the principal and $2400 to the interest!!
Why do the amounts vary each month, and what happened to the other $38.70 I paid???
While looking at the payments I've made I noticed that, while I made monthly payments of $200, I am only credited for $161.30. The amounts they apply to the principal and interest differed each month too - one month they applied $59 to the principal and $102.30 to the interest, and another month they applied $92 to the principal and $69.30 to the interest. When they got my tax refund of $2500, they applied $100 to the principal and $2400 to the interest!!
Why do the amounts vary each month, and what happened to the other $38.70 I paid???
The $38.70 would be collection fees.
Each month your payment would be applied to fees, then outstanding interest and then principal. As your principal went down, so would your interest.
Thanks!
Also, since they use simple daily interest method, the actual number of days between payments will effect the amount that goes to interest.
The formula is CPB X IR/365.25 X number of days since last payment.
EX: Your balance is 10,000 and you interest rate is 5%. You pay $100 and it reaches them exactly 30 days after you started accruing interest (and have no fees). $41.07 would go to interest and $58.93 to principle. The day after that payment you would be accruing interest on a balance of $9941.07
Obviously, the numbers would be different if the payment reached them even one day before or after the 30 days in my example.
The formula is CPB X IR/365.25 X number of days since last payment.
EX: Your balance is 10,000 and you interest rate is 5%. You pay $100 and it reaches them exactly 30 days after you started accruing interest (and have no fees). $41.07 would go to interest and $58.93 to principle. The day after that payment you would be accruing interest on a balance of $9941.07
Obviously, the numbers would be different if the payment reached them even one day before or after the 30 days in my example.
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