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I am using Great Lakes to pay for two FFEL Consolidation student loans that are on the same account. The interest rate for both loans is 7.25%. For the past four months I have been making the minimum (interest-only) payment of $254.25. I am on the graduated repayment plan, and here is a breakdown of the payment history:

6/1/2017:
  Loan 1 Interest Paid: $72.26
  Loan 2 Interest Paid: $181.99
7/1/2017:
  Loan 1 Interest Paid: $72.21
  Loan 2 Interest Paid: $182.04
8/1/2017:
  Loan 1 Interest Paid: $72.16
  Loan 2 Interest Paid: $182.09
9/1/2017:
  Loan 1 Interest Paid: $72.11
  Loan 2 Interest Paid: $182.14
10/1/2017:
  Loan 1 Interest Paid: $72.08
  Loan 2 Interest Paid: $182.17

My question is: From month to month, the sum total payment for each month is always $254.25, but why is the payment of Loan 1 going down and the payment of Loan 2 going up?


UPDATE: In response to the comment: The principal amount for Loan 1 is $11,618.21. The principal amount for Loan 2 is $29,429.66. So $41,047.87 total. And since I am only paying the monthly interest, the principal doesn't change (yet).

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    It looks like they're not applying the payment to the two loans proportionally, reducing the principle on loan 1 but accruing interest on loan 2 . Have you asked Great Lakes for an explanation? – D Stanley Oct 23 '17 at 20:30
  • Nah, I thought asking it here would be easier. – MrSnrub Oct 23 '17 at 20:31
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    This doesn't make sense for interest-only payments unless they are moving the principal from one loan to the other. Do you have the remaining balance of the 2 loans for the same time period? Are those numbers changing as well? – DSway Oct 24 '17 at 0:03
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    What is the principal amount for both the loans. – Dheer Oct 24 '17 at 4:19

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