r/StudentLoans

12h ago

u/Upbeat_Ad_6346

I made a lump sum payment to pay off my interest under standard allocation payments, ~70% went to principal instead- what is happening?

Advice

Hi all-

I've been pretty bad with my loans- I took a gap year between undergrad and grad school so only had a few months of active repayment, and then back on hold during grad school, with COVID hitting in the middle of that. I made a couple lump sum payments to close out two smaller loans during grad school, but went on to make the very poor choice of just sitting in the SAVE repayment plan and making minimal to no payments because I didn't HAVE to as I'm in deferrment, so here we are with nearly $1800 in interest. Anyway, I made a mistake, and two weeks ago I tried to right the ship by paying a lump sum of ~$1800.…