To fully understand the cost of your loans, use your loan servicer’s amortization schedule to calculate the total amount you’ll need to pay, including the interest. Create a Budget to Pay Off Your Student Loans Now that you have a clear, big-picture view of your student loans, it’s...
But here are the hidden costs. During the 10 years, interest accrues on the loan balance. In this example, the borrower’s monthly payments early on ($200, $350) may not cover the full interest on the loan, leading to the loan balance increasing over time (negative amortization). Even ...