Interest
Date: Thu, 02/03/2011 - 19:24
My wages are being garnished for student loans.I believe I have paid close to 1,500 I only owed 5000 dollars. I recently recieved a notice that showed that the interest on it was almost 1000 dollars. How is that even possible? Am I possibly misunderstanding the statement I recieved? 20% of what I owe now is interest... that just doesnt seem right to me... how can I lower the interest rates? Any help would be appreciated, I just dont understand how it all works. Thank you!
No, not a misprint. You are being garnished because you were no
No, not a misprint. You are being garnished because you were not paying which means that you were behind in interest. Your payments are applied to the collection fees first, then outstanding and current interest and then principal. The average interest rate on federal student loans is around 6.8% and you cannot lower it...you are locked in by prom note and when your originally borrowed.
