Tuesday, March 20, 2007
U.S. Dept. of Education Sued for Overcharging Students on Student Loans
A math teacher claims that her consolidated loan under the Direct Loan program had improperly capitalized interest between her June payment and June 30.

Apparently repeated requests to fix this went unresolved.

I've held my loan consolidation at the Direct Loan program since 2004, and have not noticed this personally. (I did pay more in interest in July 2005 than June 2005, but my payment cycle was longer from June to July than from May to June because of business day constraints.) I've never had any other problems, either.

I certainly hope that this situation is resolved quickly and appropriately. No student should be paying interest on interest if she is making her payments as agreed.



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