Why Your Student Loan Balance Grows: Unpaid Interest, Forbearance, and Negative Amortization

Why Your Student Loan Balance Grows: Unpaid Interest, Forbearance, and Negative Amortizationを詳しくリサーチ! 読者が気になる 重要ポイントを凝縮して配信します。

Then there's forbearance, which might seem like a knight in shining armor when you're struggling to make payments. But, be careful what you wish for - forbearance can actually increase your loan balance over time, since interest continues to accrue even if you're not making payments. It's like putting a - it might provide temporary relief, but it's not a long-term solution.

So, why does this happen? It's because interest doesn't take a break, even if you do. When you're in forbearance, your loan balance is like a snowball rolling down a hill, gaining speed and size as it goes. Yikes!