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We have a couple of Direct Plus loans. They are presently in Deferment, so there is no scheduled payment due. After having a nice conversation with a person at Nelnet, I left with the understanding that if I made an unscheduled payment during Deferment, I could direct the payment toward the Principal of whichever of the loans I picked.
Based on that information I made an unscheduled payment for $2000.00 against the oldest loan.
That was about a week ago. Today, upon studying the website, it is apparent that they have taken 2/3 of the money and applied it to the outstanding Interest, and only placed $719 against the Principal of the loan.
I am thinking that ALL of the payment should have been credited to the Principal. Here's why, when you make a regular mortgage payment, it is broken up between interest and principal according to the amortization schedule, but when you make a payment in addition to the amount due at the moment, it is to ALL be credited against the Principal. In this case, there was NO payment due, so all the $$ should have been credited to Principal.

Was the person who advised me incorrect, or do I have an issue with Nelnet?

Thanks in advance for your input.

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