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Published : December 16, 2021

Interest capitalization occurs when unpaid interest is added to the principal amount of your student loan. ... Interest is then charged on that higher principal balance, increasing the overall cost of the loan (since interest will now be charged on the higher principal amount)

Interest capitalization occurs when unpaid interest is added to the principal amount of your student loan. ... Interest is then charged on that higher principal balance, increasing the overall cost of the loan (since interest will now be charged on the higher principal amount)

Interest capitalization occurs when unpaid interest is added to the principal amount of your student loan. ... Interest is then charged on that higher principal balance, increasing the overall cost of the loan (since interest will now be charged on the higher principal amount)