CompoundInterestFan
Recycles dryer sheets
- Joined
- Jan 20, 2007
- Messages
- 222
Maybe a basic question here, but I've never looked closely at this before. I'm doing my taxes, and I noticed that the amount of student loan interest I paid was still above the max deductible. I'm trying to figure out how much extra I need to pay on the principal to get the interest below the max deductible. So I look at the payment details for the student loan, and I see this:
Date Interest Principal
12/2009 $213.91 $148.09
11/2009 $198.76 $163.24
10/2009 $255.02 $106.98
09/2009 $223.82 $138.18
08/2009 $280.28 $81.72
07/2009 $224.89 $137.11
06/2009 $225.56 $136.44
05/2009 $282.43 $79.57
04/2009 $250.75 $111.25
03/2009 $227.15 $134.85
02/2009 $235.90 $126.10
01/2009 $309.45 $52.55
I pay the same amount every month, so I was surprised to see the applied amounts change so drastically each month. I've never really looked on a month-to-month basis to see how the interest/principal is distributed, but I always assumed a nice gradual decline in interest (with a corresponding rise in principal). Is this distribution typical? Also, given this distribution, how can I figure out how much extra principal to pay each month to get the max interest below $2500? The loan rate is 6.375%.
Date Interest Principal
12/2009 $213.91 $148.09
11/2009 $198.76 $163.24
10/2009 $255.02 $106.98
09/2009 $223.82 $138.18
08/2009 $280.28 $81.72
07/2009 $224.89 $137.11
06/2009 $225.56 $136.44
05/2009 $282.43 $79.57
04/2009 $250.75 $111.25
03/2009 $227.15 $134.85
02/2009 $235.90 $126.10
01/2009 $309.45 $52.55
I pay the same amount every month, so I was surprised to see the applied amounts change so drastically each month. I've never really looked on a month-to-month basis to see how the interest/principal is distributed, but I always assumed a nice gradual decline in interest (with a corresponding rise in principal). Is this distribution typical? Also, given this distribution, how can I figure out how much extra principal to pay each month to get the max interest below $2500? The loan rate is 6.375%.