Last November, I found out that my graduate school automatically notified my student loan servicer that I was taking classes “half-time”, which, for graduate school, allowed me to automatically defer my student loans. In fact, because I had a subsidized loan, the government paid my interest for me so that it didn’t accrue. Even though I didn’t have to pay, I continued to pay the $200 minimum per month.
But this summer and fall semester, I only took one class, which means I’m not half-time anymore. I got a letter from my student loan service company that basically I owe interest on all those payments since May (the end of my last half-time semester). So, instead of paying down my loan by $200 each month, I’m back to paying down about $150 per month, plus $50 in interest.
Luckily I don’t owe all that money right now. Instead, they took it out of my payments and recalculated my balance owed. Instead of owing $9998, I’m back up to owing $10,280. Dang, back up over $10k. It was nice owing only 4 figures for a while, but I should have known better.
But since I plan on taking 6 credits again next semester, I’ll go back into automatic deferment for 5 months, which means about $250 savings in interest!
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