Why Are My Student Loan Payments Only Going to Interest? - AssetsandOpportunity.org

Why Are My Student Loan Payments Only Going to Interest? In this informative video, we will clarify the reasons behind the structure of student loan payments, particularly why a large portion seems to go towards interest rather than the principal amount. We will explain how interest accrues on both federal and private loans, and the process of how monthly payments are allocated. By understanding how your interest is calculated, you can gain a clearer picture of your repayment journey.

We will also touch on the concept of capitalization, which occurs when unpaid interest gets added to your principal balance, increasing the amount you owe. This can have a significant impact on your overall debt. Additionally, we will discuss the benefits of making interest payments while still in school and how doing so can save you money over time.

Whether you're currently repaying student loans or preparing to take them out, this video will provide you with essential information to help manage your debt effectively. Join us as we break down the complexities of student loan payments, and don't forget to subscribe to our channel for more educational content on wealth building and financial management.

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