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Know the terms of your student loans: Your Stories

As thousands of Central New York college students graduate this week, not only are they tasked with finding a job, many also have to begin paying back their student loans.
Liverpool (WSYR-TV) - As thousands of Central New York college students graduate this week, not only are they tasked with finding a job, many also have to begin paying back their student loans.

There's a warning from a Liverpool woman: make sure you know the terms of your loan agreement and have the company give you a schedule that breaks down the payments into interest and principal.

Every month on the 25th, Kaitlin Boyce is on her computer paying back her student loans. She graduated from Le Moyne College in 2008 and six months later, the bills started rolling in.

"Obviously going to college was expensive and my parents and grandparents could only do so much, but I had to go in and get private loans in addition to the Stafford Loans," said Boyce.

One of those loans was from HSBC and was handled by American Education Services (AES), a student loan servicer, who Kaitlin said she's paid regularly over the past six years.

"The original loan plus, the capitalized interest was for about $8,500 and I've been paying a little more than what's due each month, but it’s not going down," said Boyce.

When she noticed the loan had only gone down about $1,200 - she said she knew something was wrong.

"I contacted AES and requested an amortization schedule for the loan and they came back and said they would not provide that to me," Boyce said.

She asked for a loan payment history.

In an email from the company, a representative explained that interest accrues daily based on principal balance and interest rates. Payments are applied toward accrued interest, before reducing the balance.

Also, since the number of days between payments may vary, the company told Boyce it can't provide an accurate amortization schedule of her account.

"I would just love to know what I'm paying towards. Am I paying off my college education or am I paying just on interest," asked Boyce.

NewsChannel 9 reached out to American Education Services and a media relations representative told us the company would be in contact with Boyce.

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