I finally graduated but now I’m knee-deep in figuring out my student loans. I remember using a student loan amortization table a while back to estimate my payments, but for the life of me, I can’t remember how to make one myself. Is there anyone out there who can explain what an amortization table is and how I can create one for my loans? I have multiple loans with different interest rates, so I’m a bit lost on how to factor that in.
Any advice would be a lifesaver! Thanks in advance…
Best wishes on your graduation! If college loans are overwhelming you, don’t worry. A table of amortisation can be quite beneficial. It is essentially a month-by-month summary of your loan payments over time. It displays the amount that goes towards the principal amount of the loan as well as the amount you pay in interest. This makes it easier for you to calculate how much you’ll pay overall and how far along you are. If you have more than one loan with a variable interest rate, there are two methods to create a table. The simpler option is to create a distinct table for each loan, but you can also use a weighted average interest rate to integrate them into a single table. Although there is a lot of maths involved, everything is displayed in one location.