I have a question regarding standard (or 'level') debt repayment plans, specifically for my student loans. Hoping someone might have some insight.
"Standard repayment is a level payment plan, with up to 120 fixed monthly payments during a repayment term of up to 10 years."
"Borrowers save money by paying less interest over a standard repayment term because standard repayment offers the shortest repayment term."
Can anyone elaborate on exactly how interest is applied?
Thanks to everyone who answered and commented. I took the advice you gave. Turns out, simply, interest on the principle is calculated every night and applied to the principle. Thus, yes, the more the principle is paid off (every month), the less is due the next payment. There is no amortisation.