Ok- so I'm not exactly uneducated about finances in general but I obviously do NOT have a clue about how my student loans work.
Last fall I finally swallowed my last little bit of pride and filled out the IBR forms and qualified for zero payments. (this was huge for me because I am a firm believer in paying debts, I filed chapter 7 years ago and swore never to fall behind or not pay again). Anyway, off went the papers and I thought everything was fine. Somehow I thought I would get getting some sort of minimum payment credit toward my balance each month, but here it is 8 months later and I have a higher balance due to interest charges than I started with!
I just want to kick myself in the butt for doing this. My loans are held with 'Nelnet'. I feel like the interest rate is sky high (over 6%), I have 4 loan accounts that total 17k and change. (ya I know I know, all for a teaching certificate I'm not going to use but that point is moot right now).
What I need to know is HOW DOES IBR work? Should there be some type of 'credit' toward the balance each month or does IBR just defer payments while interest continues to accrue on the accounts? I'm not working yet but honestly I can find money to toss at this monster.
Has anyone successfully called NELNET and gotten answers? The couple times I've tried to contact them, well its not been productive for anything but raising my blood pressure.
I feel like a fool. I have 15 years of banking experience, I know how the credit and lending markets work, I've worked in banking. This is WHAT I DO... I just don't know about student loans. UGH (I really want to cry)