Loans, and the interest we pay on them.

Anybody ever look at their payments on loans and see what amount goes towards interest and what goes toward principle?

Most people who have a mortgage do this on annual basis. Yesterday I was looking into the specifics of Traci's law school loans (preparing for the 2006 tax filing.).

I know all the details of her loans, but I never really looked at the details of the monthly payments -- what went towards interest vs. principle.

Let me first tell you that on her Federally subsidized student loans, the interest rate we pay is ridiculously low -- savings account type interest rate low.

Turns out, we pay more in interest in 3 days than we pay on the principle for the month.

Before those with mortgages say "So what", bear in mind that a GREAT mortgage rate is in the neighborhood of %6. I'm paying less than half that (well less.).

If you are reading this and are thinking about going to law school (or any other school requiring large loans), borrow as LITTLE as possible. Traci did, and I'm very thankful for that. I know some of her friends/co-workers borrowed the maximum at times and took trips, bought new cars, etc... Good luck paying all that back.