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Why Did My Federal Student Loan Balance Drop to Zero?

If your federal student loan balance suddenly drops to zero, there are several logical reasons that might explain what happened.

When payments go almost entirely towards interest, lenders profit and debt lingers. Fortunately, there are ways to improve this situation.

There are several explanations for why a student loan balance would go up even though the borrower has made payments.

Payments toward interest are profits for lenders. Payments towards the principal balance eliminate debt.

Knowing when student loan interest gets added to your balance means you know how to prevent student loan interest from getting added to your balance.

Elimination of student debt is the goal of any student loan borrower, but there are few items to consider before making that last payment.

Capitalized interest is one of the reasons that student debt can spiral out of control. It is also avoidable in many circumstances.

Taking a break from college can have a major impact on student loans. Problems can be minimized by planning ahead.

A basic understand of student loan interest is essential to make sure that lender mistakes get identified and corrected.