Granny_Weatherwax Posted February 21, 2015 Share Posted February 21, 2015 DD and I called and requested payoff amounts for each of her unsubsidized loans. We then submitted payments (online per the request of NSDLS) and were told those payments would be credited to the unsubsidized loans. I just checked DD's account. NSLDS divided the payments among all of her loans, including the subsidized loans. As a result she still has large outstanding balances on the unsubsidized loans and is still accruing interest. I sure hope this can be corrected. Quote Link to comment Share on other sites More sharing options...
Ravin Posted February 21, 2015 Share Posted February 21, 2015 How frustrating. With just a few loans it makes sense to pay off the ones accumulating more interest first. My loan pile is huge, so I plan on consolidating the whole kit and caboodle so there's just one loan payment to worry about. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 22, 2015 Share Posted February 22, 2015 You probably will just have to make some calls. My bank helpfully kept applying my extra payments to future payments, instead of to the principle, as I had asked. It just took persistent phone calling. I also learned (this was in the days of paper payments, checks, envelopes and stamps) to enclose a note each time specifying that the money was to be applied to principle only. They eventually got it right...most of the time. Be persistent! 1 Quote Link to comment Share on other sites More sharing options...
creekland Posted February 22, 2015 Share Posted February 22, 2015 I'd be calling to get it straightened out. There's no reason at all you can't pay off the unsubsidized loans first. Many have done it. 3 Quote Link to comment Share on other sites More sharing options...
maize Posted February 22, 2015 Share Posted February 22, 2015 Agreeing with Catherine that you need to be persistent; keep calling until they get it right. I have also had problems with loan payments not being applied as I requested. I started sending my written instructions with the important bits bolded and highlighted, and sometimes even specified what they were NOT to do with the funds. Even then instructions sometimes got ignored and I had to call and get things fixed. The errors mysteriously tended to be in favor of the loan holder, applying funds intended to pay down higher interest loans partly to lower interest loans, for example. I am convinced this was company policy and probably cost unwary customers a lot of money over time. 2 Quote Link to comment Share on other sites More sharing options...
SparklyUnicorn Posted February 22, 2015 Share Posted February 22, 2015 The errors mysteriously tended to be in favor of the loan holder, applying funds intended to pay down higher interest loans partly to lower interest loans, for example. I am convinced this was company policy and probably cost unwary customers a lot of money over time. Ah yes. My loans were sold a few years ago. I got a bill that claimed my new payments were half. They had recalculated everything and lowered my payment, but extended how long it would take to pay. Oh how very nice of them (NOT). It took awhile for me to get that straightened out. Before that I had Direct Loans. I had some weird problem where they were sending me bills with someone else's name on them. Someone had changed their name through marriage and they changed that information on my account instead of the other person's account. It was a mess. It took about 6 months of me calling them at least once a week to finally get them to fix it. They made such a big stink out of me proving who I was, but apparently whoever else changed their name didn't have to go through all that much! 2 Quote Link to comment Share on other sites More sharing options...
Granny_Weatherwax Posted February 22, 2015 Author Share Posted February 22, 2015 DD and I plan on calling first thing tomorrow morning. 1 Quote Link to comment Share on other sites More sharing options...
Granny_Weatherwax Posted February 23, 2015 Author Share Posted February 23, 2015 DD and I contacted NSLDS and the agent said she will correct the payment allocation and make sure everything is applied to the unsubsidized loans. She will also backdate the payment so the interest that has accrued will be cancelled. Thank goodness. 8 Quote Link to comment Share on other sites More sharing options...
creekland Posted February 23, 2015 Share Posted February 23, 2015 Good to hear! Thanks for the update and glad they are doing what they were supposed to do in the first place. 1 Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted February 23, 2015 Share Posted February 23, 2015 You probably will just have to make some calls. My bank helpfully kept applying my extra payments to future payments, instead of to the principle, as I had asked. It just took persistent phone calling. I also learned (this was in the days of paper payments, checks, envelopes and stamps) to enclose a note each time specifying that the money was to be applied to principle only. They eventually got it right...most of the time. Be persistent! They did the same thing for my student loans! And then they'd spend 10 months responding to a request for proof of where money was applied (by which time I'd put 10 MORE payments on it, that were also not applied correctly, etc) and I ended up paying it off entirely with a personal loan and then quickly paying down the personal loan. My dad had similar experiences (He went back to college when I was a freshman in high school) and we are totally unhappy with how student loans are dealt with. 1 Quote Link to comment Share on other sites More sharing options...
Granny_Weatherwax Posted April 6, 2015 Author Share Posted April 6, 2015 Well, that didn't work out as expected. The payments, although reallocated, were still distributed between the unsubsidized and the subsidized. Interest is still accruing on the unsubsidized loans; loans we thought were paid off two months ago. We have copied all documents we have on hand and have written a letter detailing the payment dates and amounts and directing the payments to be allocated to the unsubsidized loans with the payoff amounts as of February 1, 2015. Ugh. I hope this takes care of it. 2 Quote Link to comment Share on other sites More sharing options...
creekland Posted April 6, 2015 Share Posted April 6, 2015 Well, that didn't work out as expected. The payments, although reallocated, were still distributed between the unsubsidized and the subsidized. Interest is still accruing on the unsubsidized loans; loans we thought were paid off two months ago. We have copied all documents we have on hand and have written a letter detailing the payment dates and amounts and directing the payments to be allocated to the unsubsidized loans with the payoff amounts as of February 1, 2015. Ugh. I hope this takes care of it. Good luck. It must be frustrating on your end. One has to wonder just how hard it can be... "Put this payment against that loan, #_____." 1 Quote Link to comment Share on other sites More sharing options...
plansrme Posted April 6, 2015 Share Posted April 6, 2015 I am having similar issues with my mortgage company. It is incredibly frustrating. I do not even bother being nice when I call now-I just start out irritated and get more so as the call progresses. I actually told one rep that I would stop raising my voice if she would stop being stupid. Possibly not my finest hour, but I have spent more hours than I want to count trying to make them do their job correctly. 5 Quote Link to comment Share on other sites More sharing options...
Granny_Weatherwax Posted May 6, 2015 Author Share Posted May 6, 2015 They are finally paid off (zero balances are online and interest has been credited)!! :party: What a crazy 4 month process. 10 Quote Link to comment Share on other sites More sharing options...
creekland Posted May 6, 2015 Share Posted May 6, 2015 Glad to hear that something is finally going right!!! :party: :cheers2: 2 Quote Link to comment Share on other sites More sharing options...
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