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Interest is what makes a loan cost more than you borrowed — and how it works decides how much more. A little understanding (and a few small payments) can save you a surprising amount. Here's how student loan interest actually works.
A little interest paid early saves a lot later
Interest on an unsubsidized loan starts the day it's disbursed and can capitalize onto your balance, so you end up paying interest on interest. Paying even a small amount each month while you're in school stops it from snowballing — one of the easiest ways to cut what a loan ultimately costs you.
Keep going: compare types of student loans, understand loan repayment, and build a college budget.