ACS Education Services Student Loan Complaint

ACS Education Services Student loan department,

Non-federal student loan Dealing with my lender or servicer Don't agree with fees charged Washington

Hello, I took out a private student loan from ACS Education Services in 2006. Each month I have made my payments on time. They almost always apply over % - of my payment to interest and not the principal, so my balance barely goes down. When I contacted them about this they responded this, and this is on their website : Q : Why is n't my balance going down even though I am making payments? A : Payments are applied to assessed late charges ( if any ) first, then to any outstanding interest, and finally to the outstanding principal balance. You may have outstanding accrued interest that needs to be paid off first before you will see your loan balance begin to go down. Always remember that the amount of interest paid with your payments will be higher during the initial period of repayment and gradually decrease as your balance decreases.


on the statements above. Similarly, the month before just before making my payment they indicated that I had $51.00 in outstanding interest, but as you can see, they took $76.00 of my payment and applied it to the interest. The remaining $68.00 went to the principal. They did not respond to my inquiry about why so much of that payment was applied to interest. And, as you can see, in almost every one of my payments, a good deal more goes to the interest. What they are doing is unethical and unfair. They are not applying payments appropriately, and I believe it is to get more money from the students who borrowed money from them. They need to be stopped.