Date Received: 2018-05-11T00:00:00
Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Consumer Consent Provided to Share Complaint: Consent provided
Consumer Complaint: I have been paying additional amounts on my monthly payments in order to reduce the principal. I have just found from dealing with the company that additional amounts I have been paying since XX/XX/2012 have not been applied to principal. Instead the company have been holding the funds for future payments in a ” paid ahead ” status.
Basically holding my money and indefinitely pushing it forward in time to future payments instead of applying it to principal. This is a problem because I am paying the money now to reduce the principal on which I am paying interest. But they are not applying it to the principal, so they have my money, have not reduced my principal and are still changing me interest on the full amount.
I had NO IDEA this was happening. I have been paying a lot more each month to reduce principal and apparently they have just been holding my funds.
As of today, after speaking with a rep, they said they have taken off the ” paid ahead ” status on my account. :
State/Zip: CA 917XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 2903982
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