4 Facts You Should Know About Student Loan Interest
1. Interest Can Accrue Even When You Aren’t Making Payments
In many cases, loan interest will continue to accumulate even if you aren’t required to make full payments toward the principal balance.
2. Consolidation Doesn’t Always Save Money on Interest
Student loan consolidation is often recommended as a tool for cutting the cost of student debt, but it doesn’t always do so.
3. You Can Take Advantage of Tax Breaks on Interest
Borrowers can deduct up to $2,500 per year.
4. Interest Rates Make a Big Difference
The best ways to reduce the amount of interest you pay on student loans is by refinancing to a lower interest rate.