Answer
Payments generally cover interest first, then principal. Unpaid interest may capitalize on some loans—changing future balances.
Check your promissory note
Deferment, IDR, and subsidies change cash flows; the split idea still applies.
Core lesson
Go deeper: Loan payments explained.
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FAQ
- Why did my balance grow?
Accrued interest capitalizing or less than full interest coverage can increase principal balance—loan-specific.