Understanding Student Loan Repayment
Repaying student loans is a significant financial obligation for many graduates. Understanding how interest accrues and how different repayment terms affect your monthly payment is crucial.
Standard Repayment Plan
The standard repayment term for federal student loans is 10 years. Private loans may offer terms ranging from 5 to 20 years.
Interest Capitalization
Unpaid interest may be added to your principal balance (capitalized) at certain times, such as when deferment ends, increasing your total loan cost.