Date Received: 2018-10-09T00:00:00
Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Consumer Consent Provided to Share Complaint: Consent provided
Consumer Complaint: I was struggling in my youth and forced to allow my student loan to go into default status. One day I received a phone call that allowed me to get my loan out of default status with income base repayment options. I was told that all the fee ‘s would be removed from my account upon completion of the payment agreement.
**First Issue** However, after my loan became in active status, I noticed that I was being charged all the interest which had accrued from the time my loan defaulted to present. I have payed on my interest for several years and it was all going towards back interest from within that period.
**Second Issue** I have made at least three request for an unofficial ammortization schedule for peace of mind. I needed to understand how this institution were able to determine my payment amount when all my payments were being applied towards back interest. This financial institution ( XXXX ) denied every single request to provide me with a letter of ammortization for the loan.
**Third Issue** After reviewing my account today I noticed that all the interest previously on my account has now been capitalized and applied as principal on the loan.I thought that legally interest had to remain seperate in order to prevent interest accruing over interest. Especially since I have made all my payments as scheduled according to the lenders terms.
**Conclusion** I believe that XXXX needs to be investigated for attempts on misapplying my student loan repayment and the initial loan documents/terms needs to be evaluated.
State/Zip: NC 275XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 3040715
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