So I owe her a lot of money. I don't really pay attention to how much because I figure it's not at SO bad of an interest rate (4.85%) and the monthly payments aren't SO bad ($406.96).
But yesterday when I went to make my payment I noticed something I had never seen before. My monthly accrued interest was $415 - $9 more than my monthly payment. What the heck! I think the last time I looked at that box it said something to the effect of $353, so at least I was making a small dent in the principal. But to be accruing more than I'm paying? That's just nonsense.
In January I posted that my total outstanding debt to Aunt Sallie was $76,243.81. Guess what my total is today (yesterday's payment has not yet posted)?
Here's what she has to say:
Your education loan is a simple interest loan. Interest accrues daily on the unpaid principal balance. The number of days between payments determines the amount applied to interest from each payment. The formula for calculating simple interest is as follows:
Principal balance x Interest rate x Number of days between payments / 365.25
So I'm gonna have to play around with the interest calculator and maybe up my payment amount because there's just no way I'm gonna accrue more student loan debt. I don't want to be a freshman forever.