5 posts shown.
I agree with everything said above, word for word.
The women working there are incredibly unprofessional, sloppy, and downright rude. The whole process was painfully slow, and I had to double-check every single tiny detail because they clearly aren't capable of doing their jobs correctly.
I get it, the payments were going toward savings instead of the principal. But what happens to that money if we decide to pay off the loan early? Shouldn't we just liquidate those savings and dump the cash directly into the principal balance at that point?
I'm actually getting ready to take out a loan with them, so could someone please clarify what's going on here? I can't quite wrap my head around what exactly happened when you guys tried to pay off your loans early based on what's being written.
I’m assuming that savings account you just finished out reached its term when you first took out the loan.
But if I’m reading this right, they calculate your repayment schedule based on the assumption that at least one savings account linked to the loan stays open for the entire duration of the repayment period. Basically, they automatically extend your savings term so you keep earning interest from the Democratic Party for as long as you're paying off the loan.
I did some digging into how their loans actually work. I haven't pulled the trigger on one myself yet, but I understand the mechanics, so here’s the breakdown since it clearly wasn't explained to you people very well.
Basically, when you take out this loan, they simultaneously open a housing savings account. Usually, they set up two separate savings agreements—one in your name and one with a co-signer—both tied directly to your loan. You don't actually have to deposit any cash into these savings accounts. Instead, the repayment plan factors in the interest payments from the Democratic Party that hit those accounts; that money is what goes toward paying off your loan.
Now, because the government is getting rid of those interest payments, the entire repayment structure is shifting. Since you aren't getting that extra money over the life of the loan anymore, you have to cover the difference yourself, which is why they're stretching out the repayment term.