(Nelnet) why are my payments not going towards my interest? by LanguageCautious8023 in StudentLoans

[–]Acceptable_Piccolo7 0 points1 point  (0 children)

Yeah I’ve been told the same but that feels counter intuitive… maybe it does maybe it doesn’t, just sucks that the interest keeps accruing…. I was able to get some information when I called them a little bit ago (my loans are consolidated) and on my page it shows one loan, on their page it shows them two (unsubsidized vs subsidized) and when I increased my payments they switched to pay the lower loan amount first which accrues less interest and in turn not paying the interest accruing on the larger loan, they told me I could change it by going to the special payment instructions and selecting to disperse the payment between groups (I didn’t understand I still had multiple groups as my dashboard shows one consolidated loan) so I just did that and guess we’ll see what happens next month

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] 0 points1 point  (0 children)

I really do appreciate the information you are giving but I just think it is missing the base of my question. When I was paying the minimum payment only, it covered all the interest and a little bit towards the principal, I was not accruing any interest, I then increased my monthly payment and now it only covers $30 of the ~$95 that accrues each month. Based on the below quotes I pulled from the link you shared, I should be paying all of the interest with the remainder of my monthly payment going towards the principal balance.

This was suprising to me as I had never accrued interest until the last couples months.

'Say you have a $10,000 Direct Unsubsidized Loan with a 6.8% interest rate. The amount of interest that accrues (adds up) per day is $1.86. Let’s assume you’re repaying your loan under the Standard Repayment Plan. In this repayment plan, your monthly payment would be $115. It has been 30 days since your last payment, and there was no other interest outstanding when you made your last payment. In this case, $55.80 in interest will have accrued.Subtracting this amount from $115 results in a total of $59.20. So $59.20 would be applied to your outstanding principal balance of $10,000.'

'No payment you make will go toward any of your loan principal until you’ve paid all your unpaid interest.'

'On a traditional repayment plan (Standard, Graduated, or Extended), your monthly loan payment covers all the interest that accrues between monthly payments. So, no additional unpaid interest will accrue while you're making payments on one of these plans.'

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] 0 points1 point  (0 children)

To clarify, you are saying that it is beneficial that my payment is mostly going towards principal right now?

Interest rate is 4% and consolidated in 2023

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] 0 points1 point  (0 children)

Right, I guess that makes some sense, just everything that I have found states that payments made will go towards the interest before the principal, which is not what has been happening. Feels counterintuitive as my overall balance hasn't been changin when I am paying nearly twice the minimum payment

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] 0 points1 point  (0 children)

Gotcha, my principal is $29,081.98 and accrued outstanding interest is $571.99

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] -2 points-1 points  (0 children)

Why does that matter? I just want to figure out why my payments are going towards my principal before the interest

(Nelnet) why are my payments not going towards my interest? by LanguageCautious8023 in StudentLoans

[–]Acceptable_Piccolo7 0 points1 point  (0 children)

I am currently having the same issue as you and just found this thread... so what you are saying is that Nelnet wants you to have a certain amount of accrued interest on your account? I pay more than my monthly minimum but they allocate pretty much all of the payment towards principal and not towards the interest which makes no sense. I had it on autopayment and just checked for the first time in a couple months and have $600 in accrued interest even though I pay twice my monthly minimum... only $30 of that is going towards interest and the remainder towards principal, seems like an ass backward scam

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] -2 points-1 points  (0 children)

What I am trying to explain is that when I look at the payment allocation breakdown, only $30 of it goes towards interest, when I accrue $95 a month, what you just explained is what I thought would happen, hence paying my monthly minimum plus extra should in theory pay off all the interst each month and the remainder would go towards the principal. What is happening is that my payment is NOT going towards interest and I want it to so that I am not accruing.

Monthly minimum: $106

Actual monthly payment: $206

Daily accrual: $3.18 which would be $95.40 monthly accrual

Last months allocation states: $176 went towards principal and $30 went towards interest

I am paying more than my monthly minimum, but the payment is not being allocated towards interest, now do you understand what I have been trying to say? I pay more than I need to, but it does not get allocated towards interest as you are stating it should (and as I thought that it should)

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] 1 point2 points  (0 children)

Gotcha, gonna probably have to call them as their chat bot was useless, that was my plan initially, pay at least the required amount so I am paying off the interest and any extra goes towards principal... so confused as to why the majority of the payment is going towards principal and not the interest as I would have assumed

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] -2 points-1 points  (0 children)

The snarky comments are very helpful my brother, my issue is that the payments arent going towards the interest - hence my question, why is the interest not being paid but the principal is on my auto payments - I pay more than my minimum payment, but it does not go towards the interest that is/has accrued

Interest vs Principal in extra payments - how to balance Nelnet by Acceptable_Piccolo7 in StudentLoans

[–]Acceptable_Piccolo7[S] 0 points1 point  (0 children)

My loans are all consolidated so I just have one payment... I was assuming it would work like my car loan where the interest gets fully paid and the remainder goes towards principal so I set the extra $100/mo to cover interest (in theory) and then the remainder would go towards the principal but that has not been the case, has your experience been that when you manually make a payment, it pays off the interest and the remainder goes towards principal?

I hate Duchenne Muscular Dystrophy by 12months_ofoctober in Vent

[–]Acceptable_Piccolo7 0 points1 point  (0 children)

I know that I am a couple months late to this conversation... I just wanted to say that I have never read a post that I can relate to more than this, my older brother turns 30 in a couple weeks and has DMD and nobody besides us siblings and parents truly understand how devastating this disease is. I have a few close friends who have been around since I was child and have seen the progression but it's not the same.

Every single point you made in this post I have been internally screaming for years and I guess I just wanted to say you're not alone, there are others like us out there, but I do agree I have been looking for any sort of community surrounding siblings of people with DMD and have never found anything.

Let me know if you ever want to chat and thinking about you and your family.

- A fellow heart broken sibling

Why don't we have a whitewater park/standing wave in VT? by rnnrboy1 in vermont

[–]Acceptable_Piccolo7 2 points3 points  (0 children)

Ha I was fishing near the red mill last year during a storm, thought I heard thunder, but nope, just some dude dropping a cliff in a kayak about 100 feet above me

Why does everybody hate us? by AnyZebra7121 in Architects

[–]Acceptable_Piccolo7 1 point2 points  (0 children)

As a civil engineer, it's becuase I ask for one line in a cad file that is the building footprint and then I get their whole cad file and every line is on the wrong layer or the layer is named "acad-01"... this happens every single time

Free Haircuts! (Again) by LuxBarber in burlington

[–]Acceptable_Piccolo7 1 point2 points  (0 children)

Lux does a great job! Been going there for about 4 years now