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Is it better to pay interest or principal?


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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


1. Pay capitalizing intereing

2. Pay prinicpal


let interest keep capitilzing

1. Pay principal

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

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