captruss24
Did I mention I'm a South Carolina fan? You know,
- Joined
- Apr 19, 2011
- Messages
- 763
- Reaction score
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Does anyone know if subsidized/unsubsidized student loans are set up like an amortizing loan ie mortgage or more like a credit card? The reason I ask is b/c I've noticed that the interest continues to be capitalized while we are making amortizing payments (or so I was led to believe). Each monthly statement has a P&I breakdown, which is followed by a principal reduction after the payment is made, but accruing interest in being rolled back into the principal balance in the process. It's like I'm paying double the interest. I'm starting to think if we don't pay the balance off in full at month's end, the accrued interest is just like a credit card's penalty fee (4.25% per diem). The loan balance will never be paid off in full over its prearranged term.
Thoughts?
Thoughts?
