If you follow my blog, you know that I can't stand my student loan servicer: FedLoan. This company was contracted by the Department of Education to administer student loans that were bought by the government during the height of the financial crisis. Well, they are total screw-ups, and you can read my original post about why FedLoan Servicing is the Worst Student Loan Servicer.
Well, now I am once again encountering problems that I don't understand, and FedLoan had never been much help.
First, the original loan amount was $13,700, at 6.55%, and had a 10 year standard repayment schedule. The original payment amount was $175.33. As with all my loans, I setup automatic payments to ensure that I always paid the minimum each month, and then I could pay additional as I had the money.
What happened in the past: As you can read in my original post about why FedLoan sucks, if you made an additional payment that was in excess of the minimum payment, the auto debit would not got through – thus causing double work. They had an option to opt out of this, and the auto-debit would go through each month no matter what, and I finally (after several calls and certified letters), was able to get them to do. Well…it still is not happening, but now my payments really don't make sense.
Here is a breakdown of my last few payments:
8/5/10 – Extra $290 Payment
8/14/10 – No Automatic Debit
9/7/10 – Extra $465 Payment
9/14/10 – $175.33 Auto-Debit
10/11/10 – Extra $500 Payment
10/14/10 – $174.91 Auto-Debit
11/10/10 – Extra $1,000 Payment
11/14/10 – No Auto-Debit
So, not only is the auto-debit on going through sometimes, now my monthly payment has gone down to $174.91 for no apparent reason! My loan is a straight amortization over 10 years, there should not be any changes to the monthly payment regardless of how much has been paid. Then, it only auto-debited 2 of the last 4 months, even though every month had an extra payment made.
This makes no sense at all! Well, maybe one of the readers can help solve this irritating and perplexing problem – or even better, FedLoan's PR department, who are avid readers of this blog as well! On the bright side, the loan is down to about $6,000, so it should be paid off soon and I can say good riddance to FedLoan!
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– The College Investor