Understanding Interest, Loan Costs, and How Much You Should Borrow

This course teaches you how federal student loans actually grow over time and how to estimate the real cost of borrowing before you take out any loans. You will learn how daily interest works, why subsidized and unsubsidized loans behave differently, how capitalization increases your balance, and how to use simple rules to predict your future monthly payments. You will also learn safe borrowing guidelines that help you avoid taking on more debt than you can manage. By the end, you will understand the true cost of loans and how to borrow in a way that protects your financial future.