How can people make payments for 20 years on school loans and barely make a dent in the principal? How are those loans different than a mortgage?
In: Economics
Student loans have a lot of ways to temporarily reduce your monthly payments. But doing that means that you pay it down slower and, sometimes, don’t even pay off the interest that accrues.
Plus, with any long term loans, the first years almost all go to interest. But, as you pay down the principal, more and more of each payment goes to principal.
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