I consolidated my loans 5 yrs ago from Direct Loans.I had no idea I would be paying $30,000 interest the past 5 yrs making payments.
I could't figure out why each year my principal never moved. Today, after 2 more years of graduated payments, at the new increase rate, I called to find out if something could be done. The representative "Dave" shared I didn't qualify for anything else and if I wanted to consider a flat rate, the cost would be even higher. Here's how it works at Nelnet: You get charged a daily interest rate, which for me was $13.97/day @ 30 days ($419.10).
The monthly payment was $459.27, so each month I was allegedly only contributing $40.17 to principal. This also wasn't happening because they shared I had outstanding interest balance from deferrment in school of $2000, of which the balance of monthly payments was being applied to the outstanding interest balance. That being said, nothing over the past 5 yrs contributed to the principal. How is this possible?
You go to school to get education to help contribute to society as working class, only to be robbed by loan companies.
Not sure if other loan companies operate on this foundation, but would recommend reconsidering use of Nelnet.My experience found me giving away $30,000, don't want to see this happen to you.