Question by Eat F: How come thus much of my student loan repayments goes with interest?
Hello. One of my financing ($ 25,000 total from college) state it is very 6% varying rate of interest. My monthly repayments are about $ 350 plus of which, $ 220 has been used with interest. How is the interest thus excellent? Thats over 60% of the repayments I’m generating going with interest alone plus just $ 150 with principle!
Best answer:
Answer by Pat
Look up the terms of the loan repayment. This really is typical of mortgage financing, where the interest is the main element of repayments early about, plus over the lifetime of the loan, it reduces as well as the part going with main becomes bigger. One thing that you can do, in the event you may afford it, plus it the loan business enables it, is pay an additional $ 50 or any you are able to afford monthly to aid lower the principal. This will shorten the life of the loan plus lower a total amount paid.
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