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tbear2: "They are Direct Plus loans."

I know not of Direct Plus Loans, so take what a I write below with a double dose of salt.

"Yes there is interest accumulating while they are Deferred... It is the Payment, not the Interest that is deferred.
My concern is that 2/3 of the unscheduled payment (intended to go against Principal) was credited to interest instead."

Why are you concerned? I assume that interest accrues on deferred interest, and if my assumption is correct, I am not sure I follow the reason for concern.

In addition, most commercial notes provide that payments will be applied first to accrued interest and then to principal.

The only way that I can see that this would make a difference is is deferred interest does nto accrue interest.

What does the Note that was signed say? And if there is a loan agreement, what does it say?

Regards, JAFO
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