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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8174  
Subject: Re: Question Re: Payment made on Direct Plus lo Date: 5/19/2013 8:13 PM
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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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