In anticipating of making additional monthly payments, I contacted Nelnet last week to ensure that any additional payments over monthly interest payments would be applied to my principal. The rep I spoke with confirmed that this would be the case. Today (1/17/2020) I contaced Nelnet again to advise that I made a $1500 payment to my Nelnet accout and I want to make sure any amount above monthly interest would be applied to my principal and Nelnet flat out told me they would not do that and all my payment would go to their interest payments totalling over $40, 000 which leaves me in a quagmire of paying daily interest that will NEVER be reduced because it will continue to be calculated off a principal amount that will REMAIN STATIC until $40, 000+ is paid. Aside from being GROSSLY UNCONSCIONABLE, is this even legal? I don’t recall Nelnet ever disclosing that no monthly payments exceeding interest would NOT be applied to principal and in fact I was told the opposite just last week. I need the DOE’s intervention to mandate that Nelnet apply my additional monthly payments to principal and/or have my loans reverted to the DOE so that I will be able to pay both interest and principal simultaneously and ultimately eliminate this debt at a much faster pace. Are there any other steps that I need to take or any other department/entity that I need to contact?
Found At: Nelnet – paying down principal on my student loans