tag:blogger.com,1999:blog-538734877165581694.post7046458953203216789..comments2023-04-03T03:36:10.172-07:00Comments on Toward Mustachianism: To advance your due date or notMustachian Acolytehttp://www.blogger.com/profile/07084560871262302396noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-538734877165581694.post-49892145797252237782012-11-24T11:57:39.648-08:002012-11-24T11:57:39.648-08:00This problem sounds like it's above my pay gra...This problem sounds like it's above my pay grade. It definitely seems like something screwy was going on with your bank. One thing I can recommend is calling them again and asking someone to explain it until it makes sense. Sometimes the first person you talk to makes something up; if you're not satisfied, ask to talk to a manager.<br /><br />I find Reddit to be a great place to ask questions like this. Check out reddit.com/r/studentloans. There are people on there who know a lot more than I do.<br /><br />Good luck.Mustachian Acolytehttps://www.blogger.com/profile/07084560871262302396noreply@blogger.comtag:blogger.com,1999:blog-538734877165581694.post-36752584804207865442012-11-15T13:37:24.609-08:002012-11-15T13:37:24.609-08:00Hi there! You seem to understand this very well, c...Hi there! You seem to understand this very well, could you please help me out? I'm still confused after reading your article. I am a university student and I have thousands of dollars worth of loans. Some time ago I made a payment that I wanted to be applied to principal, but instead the bank applied it to my interest and advanced the date. For several months afterwards, my interest bill (I am making interest-only payments because I am still in school) was $0. After about 5 months, I got hit with an expensive bill, much higher than my normal monthly interest payments. I called the bank to understand this and they explained to me that making prepayments on interest is not allowed, but they did it by mistake and the date was "advanced", hence why I didn't have interest payments for several months, but now I had to pay up on the interest accrued during these months. I don't understand - if I prepaid interest for several months in advance, then why did I have to pay again for the months that interest had accrued when I was receiving $0 bills? The bank said they corrected the mistake by making me pay a large sum for those months, and now my interest payments are back to normal. Was I paying interest on interest? Did I get scammed? Please help me understand!Emannoreply@blogger.comtag:blogger.com,1999:blog-538734877165581694.post-47331199194291089122011-12-23T10:41:35.284-08:002011-12-23T10:41:35.284-08:00@Pat,
I'm glad it all worked out. Student loa...@Pat,<br /><br />I'm glad it all worked out. Student loan details are complicated so I'm not surprised even a customer service rep could be mistaken.<br /><br />I just got off the phone with a rep myself. I'll be writing up an update on my student loan situation shortly.Mustachian Acolytehttps://www.blogger.com/profile/07084560871262302396noreply@blogger.comtag:blogger.com,1999:blog-538734877165581694.post-34511322906170105632011-12-23T08:47:27.579-08:002011-12-23T08:47:27.579-08:00I wanted to update you and make the info available...I wanted to update you and make the info available for others. We did a test payment this week to pay off all of the interest on 1 of my wife's loans and some of the principal. I saw yesterday that the transaction had gone through in our bank account so we logged in to check how it applied the payment. It paid off all of the interest on that loan like I thought it would and applied the rest of the payment towards the principal of that loan.<br /><br />I'm not sure, but maybe the rep meant that any extra money in the payment would go towards interest first. The rep may not have fully understood the question or the situation either, or may have just been reading from a scripted answer.Pathttps://www.blogger.com/profile/06267289234689955219noreply@blogger.comtag:blogger.com,1999:blog-538734877165581694.post-58504856018710332532011-12-17T14:45:19.822-08:002011-12-17T14:45:19.822-08:00I'm glad I could help. I don't know what t...I'm glad I could help. I don't know what their intent is, but they're definitely tricking someone. Your wife's conversation with their customer service rep is worrisome. Keep on them and make sure your extra payments are coming off of principal. I look forward to hearing how it goes. Good luck.Mustachian Acolytehttps://www.blogger.com/profile/07084560871262302396noreply@blogger.comtag:blogger.com,1999:blog-538734877165581694.post-40918787327872797322011-12-16T10:08:10.325-08:002011-12-16T10:08:10.325-08:00Thanks for the featured post and the response!
M...Thanks for the featured post and the response! <br /><br />My wife and I were planning to always at least make the minimum payment and we were even going to start paying some next month since the first of the loans doesn't enter repayment until March. We are fortunate enough to both have good paying jobs right now and we can afford to start paying right now.<br /><br />So what it sounds like to me is that by having that checkbox there, they are trying to "trick" people into not making a payment so that they can get more interest out of the loan. I haven't looked at the website yet and seen the actually checkbox and wording since the loans aren't mine, but hopefully we can find some time this weekend to check it out.<br /><br />I guess one thing that was in the back of my mind while reading your post was something that one of the customer service reps for the federal loans told my wife. My wife directly asked if we could pay extra each month and she was told that we could, but the money could only go towards paying off interest that had accrued, it could not go towards principal. Then my wife also asked if we had the ability to direct how our payment was allocated, and she was told that we could only do that with the interest. In essence, what I wanted to find out is if we could try to use the debt snowball approach to pay off the loans.<br /><br />Anyways, thanks again for responding to my comment from the other day and I look forward to reading your blog.Pathttps://www.blogger.com/profile/06267289234689955219noreply@blogger.comtag:blogger.com,1999:blog-538734877165581694.post-17287265451313396772011-12-14T19:51:24.076-08:002011-12-14T19:51:24.076-08:00Great examples! I always advanced the dates on my...Great examples! I always advanced the dates on my loans but I also always made that minimum payment every month regardless. To me I know that I am responsible enough to always make that minimum $272 payment no matter if they want it or not. In addition if something did come up my next due date isn't until 2015 or something. Of course I am not only making the minimum payment but also very large planet crushing (like 5 times the minimum) Unicron sized payments. If this sounds like you cover your bases and push that date out. If that doesn't sound like you I would be very careful about pushing the date back.The Kechi Onehttps://www.blogger.com/profile/09806193055181323995noreply@blogger.com