I have a stupid loan question

[Moiraine]

The principal wasn't growing. My payment was going through later than when I thought it was. So on my account the principal looked bigger than the information I had kept track of, but my info was wrong:

 

Let's say I have a loan for $1000 with 10% interest.

 

And let's say I have:

Principal = $1000

Interest = $20

 

If I schedule a payment of $30 for April 3, I expect that my principal on April 3 will be $990.

 

Well, Nelnet was applying it a day later, every time. They would apply my payment on April 4. So, while I thought I was paying $20 in interest and $10 in principal, I was actually paying $20.27 toward interest and $9.73 toward principal, because the payment didn't get applied until 1 more day worth of interest (27 cents) was added. Basically my bookkeeping was wrong because I didn't realize they weren't applying it on the day I had my payment scheduled. I'm assuming what Nelnet is doing is totally normal, but I didn't realize what was happening.

[JJ Husker]

So the difference was being caused by a day's worth of interest. I'd say that makes me 100% right but I'll settle for 90% since the difference was not that the payment was being applied late but rather just a day later than you thought it was.

[ZRod]

Pretty important to call the loan company for any payment than the standard one. They're are too many ways for things to get screwed up, or misunderstood.