# Student loan question: Why are my interest payments different from month-to-month?

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).

• 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
• 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
• What is the principal amount for both the loans. – Dheer Oct 24 '17 at 4:19