[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.
Regards,
Thank you for contacting us on behalf of Mr. [redacted] and for providing us the opportunityto address his concern regarding the application of payments toward his student loan with theU.S. Department of Education (ED).To begin, we must point out that Mr. [redacted]’s loan is a federal loan. His...
loan, as with all federalloans, is a simple interest loan; meaning that interest accrues daily based on his interest rate andprincipal balance. The calculation used to determine the amount of interest that accrues per day isas follows:Unpaid Principal Balance x Interest Rate x Number of Days at that BalanceDivided by365 or 366 (Days in a Year)Correspondingly, the federal guidelines require loan servicers to apply regular monthly paymentsmade towards a federal loan first to any late charges (if applicable), then to accrued interest, andthen the remainder, if any, is prorated and applied to the principal balance of the loans within theaccount. If a payment is larger than the regular monthly payment, the overpayment is applied tothe principal of the loan with the highest interest rate, assuming all outstanding accrued interest ispaid. If a borrower is in any of the Income-Driven Repayment (IDR) plans, payments are appliedfirst to interest, then to fees (if applicable), and then to the principal balance.If a separate payment is made, in addition to a regular monthly payment, it will also be applied firstto any late fees, then to accrued interest, and then prorated across the principal balance of theloan(s) in the account, with any remainder applied to the principal balance of the loan with thehighest interest rate. (Again, except for IDR plans, in which payments are applied to interestbefore fees.)If Mr. [redacted] believes any of his payments were applied incorrectly, we are happy to reapply anyadditional payments as he directs, assuming all accrued interest has been paid, although it isnecessary for him to submit a written request in order for us to do so. Thus, it is generally to hisbenefit to make a single, larger payment at the time he makes his regular monthly payment, ratherthan to make a separate, extra payment after making the regular payment.[redacted]Additionally, during our review we did verify, since Mr. [redacted] has modified his Auto Pay (ourautomated billing service) settings to pull an additional amount each month, that the amount paidin excess of his regular monthly payment has been applied toward the loan in his account with thehighest interest rate. For Mr. [redacted] to confirm this information, we have attached a paymenthistory per loan within his account.With regards to applying Mr. [redacted]’s entire payments to his principal balance, it is important tonote that there are no provisions in place that allow for exceptions to be made to the paymentapplication guidelines for federal loans mentioned above. As a result, we are unable to honor Mr.[redacted]’s request to apply each payment he makes directly to his principal balance.I hope that Mr. [redacted] finds the information provided helpful. Please know that we are here toassist him with the repayment of his loan in any way that we can. If he has any questions orconcerns, he may contact our Borrower Services Department by phone at ###-###-####, byemail at [redacted], or by mail to the address below:Great LakesP.O. Box 7860Madison, WI 53707Sincerely,[redacted]
[redacted]
Lead Trade Practice Consultant
Revdex.com of Wisconsin
10101
W Greenfield Ave #125
Milwaukee
WI 53214
Complaint ID: [redacted]
Great Lakes ID: [redacted]
Dear
Mr. [redacted]:
Thank
you again for contacting us on behalf of Ms. [redacted]. We appreciate the
opportunity to address her additional concerns.
As
referenced in our previous response, the date IPAY Technologies verified, or
cleared the funds from Ms. [redacted]’s Chase Bank account, was not the date Great
Lakes received her payment. Regrettably, since Great Lakes cannot change the
date her payment was received, Ms. [redacted] will need to contact either IPAY
Technologies or Chase Bank for further clarification regarding the payment
issue she has encountered.
I
apologize and understand that this is not the answer that Ms. [redacted] was
hoping for. If she has any questions or concerns, she may contact our Borrower
Services Department at (800) 236-4300, [email protected], or the
address below:
Great Lakes
PO Box 7860
Madison, WI 53707
Sincerely,
[redacted]
Supervisor – Contact Escalation
Great
Lakes Educational Loan Services Inc.
[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.
Regards,
[redacted]
Thank you for contacting us on behalf of Mr. [redacted] and for providing us the opportunityto address his concern regarding the application of payments toward his student loan with theU.S. Department of Education (ED).To begin, we must point out that Mr. [redacted]’s loan is a federal loan. His...
loan, as with all federalloans, is a simple interest loan; meaning that interest accrues daily based on his interest rate andprincipal balance. The calculation used to determine the amount of interest that accrues per day isas follows:Unpaid Principal Balance x Interest Rate x Number of Days at that BalanceDivided by365 or 366 (Days in a Year)Correspondingly, the federal guidelines require loan servicers to apply regular monthly paymentsmade towards a federal loan first to any late charges (if applicable), then to accrued interest, andthen the remainder, if any, is prorated and applied to the principal balance of the loans within theaccount. If a payment is larger than the regular monthly payment, the overpayment is applied tothe principal of the loan with the highest interest rate, assuming all outstanding accrued interest ispaid. If a borrower is in any of the Income-Driven Repayment (IDR) plans, payments are appliedfirst to interest, then to fees (if applicable), and then to the principal balance.If a separate payment is made, in addition to a regular monthly payment, it will also be applied firstto any late fees, then to accrued interest, and then prorated across the principal balance of theloan(s) in the account, with any remainder applied to the principal balance of the loan with thehighest interest rate. (Again, except for IDR plans, in which payments are applied to interestbefore fees.)If Mr. [redacted] believes any of his payments were applied incorrectly, we are happy to reapply anyadditional payments as he directs, assuming all accrued interest has been paid, although it isnecessary for him to submit a written request in order for us to do so. Thus, it is generally to hisbenefit to make a single, larger payment at the time he makes his regular monthly payment, ratherthan to make a separate, extra payment after making the regular payment.[redacted]Additionally, during our review we did verify, since Mr. [redacted] has modified his Auto Pay (ourautomated billing service) settings to pull an additional amount each month, that the amount paidin excess of his regular monthly payment has been applied toward the loan in his account with thehighest interest rate. For Mr. [redacted] to confirm this information, we have attached a paymenthistory per loan within his account.With regards to applying Mr. [redacted]’s entire payments to his principal balance, it is important tonote that there are no provisions in place that allow for exceptions to be made to the paymentapplication guidelines for federal loans mentioned above. As a result, we are unable to honor Mr.[redacted]’s request to apply each payment he makes directly to his principal balance.I hope that Mr. [redacted] finds the information provided helpful. Please know that we are here toassist him with the repayment of his loan in any way that we can. If he has any questions orconcerns, he may contact our Borrower Services Department by phone at ###-###-####, byemail at [redacted], or by mail to the address below:Great LakesP.O. Box 7860Madison, WI 53707Sincerely,[redacted]
May 12, 2015
[redacted]
Lead Trade Practice Consultant
Revdex.com of Wisconsin
10101
W Greenfield Ave #125
Milwaukee
WI 53214
Complaint ID: [redacted]
Great Lakes ID: [redacted]
Dear
Mr. [redacted]:
Thank
you again for contacting us on behalf of Ms. [redacted]. We appreciate the
opportunity to address her additional concerns.
As
referenced in our previous response, the date IPAY Technologies verified, or
cleared the funds from Ms. [redacted]’s Chase Bank account, was not the date Great
Lakes received her payment. Regrettably, since Great Lakes cannot change the
date her payment was received, Ms. [redacted] will need to contact either IPAY
Technologies or Chase Bank for further clarification regarding the payment
issue she has encountered.
I
apologize and understand that this is not the answer that Ms. [redacted] was
hoping for. If she has any questions or concerns, she may contact our Borrower
Services Department at (800) 236-4300, [email protected], or the
address below:
Great Lakes
PO Box 7860
Madison, WI 53707
Sincerely,
[redacted]
Supervisor – Contact Escalation
Great
Lakes Educational Loan Services Inc.