Is it better to pay interest or principal?

[debtmamma]

I have student loans in deferement that are consolidated.

1/2 are subsidized and the other 1/2 are unsub

The interest on the unsub is $82 which is capitalizing right now.

OK What would be the best way to pay this down?

1. Pay capitalizing interest

2. Pay accrued interest

or

1. Pay capitalizing intereing

2. Pay prinicpal

or

let interest keep capitilzing

1. Pay principal

*sigh* I wish at 17 someone would have explained the difference betwen subsidized and and unsubsidized.

[LynnInMN]

When a payment is received, the lenders always apply it to the interest first, then prinicpal. Extra money can be sent in to be placed on the principal itself.