krellor@fedia.io 2 days ago
Is this the US? There are laws that protect penalty free prepayments on student loans, federal or private. Depending on the rates it may or may not be better to invest or have as a rainy day fund, depending on the overall state of finances. But you have a legal right to prepayment and it would have to be a pretty backwater lender not to be aware of this. That said, the system could be clunky.
What bank or federal payment processor?
FenrirIII@lemmy.world 2 days ago
Mohela, federal loan
krellor@fedia.io 1 day ago
https://mohela.studentaid.gov/DL/resourceCenter/HowPaymentsAreApplied.aspx
They definitely allow prepayments. Have you used the online portal?
FenrirIII@lemmy.world 1 day ago
Online portal says no payment available.
TacocaT@piefed.social 1 day ago
Call on the phone if the website doesn’t work. They are all shit and fuck you over. Don’t trust any of their repayment rules or websites. Just assume you will be bent over the entire time until repaid
I paid 1/3 of my household income to keep the interest from compounding through years of low income training. By doing this for 36 months, they were supposed to reduce my interest rate. 36 months later, they didn’t. Dozens of hours on the phone and they ended up claiming I didn’t meet the rules to reduce the interest rate. Reason…. I didn’t keep my contact info available to them throughout the duration of those 36 months. After investigating, I found that at one point the sent me an email to confirm and update my contact info. I did but apparently the system sees that as a time gap as the new info replaced the old. A millisecond gap fucked my interest rate and it happened because they asked me to do it. I get higher interest for the duration of my loan despite doing everything right and feeding my family top ramen for years to make the unnecessary payments (could have deferred through training and lived normal for those three years).
Fuck these companies
Anti_Iridium@lemmy.world 1 day ago
Have you added a payment method? Thing may have changed in the last two years since I have graduated, but I was able to pay off interest during college.