What Increases Your Total Loan Balance Fafsa Quizlet

 Several factors can increase your total loan balance when it comes to FAFSA:

  1. Interest Accrual: If you have loans with interest, it accumulates over time, increasing your total loan balance.

  2. Loan Fees: Some loans may have origination fees or other charges associated with them, which add to the total balance.

  3. Additional Borrowing: Taking out additional loans or increasing existing loan amounts will obviously increase your total loan balance.

  4. Capitalization: Unpaid interest can be added to the principal balance of the loan, leading to a higher total balance.

  5. Forbearance or Deferment: If you're unable to make payments and opt for forbearance or deferment, interest may still accrue during this time, adding to your balance.

Understanding these factors is crucial for managing your loans effectively and minimizing the overall amount you'll need to repay.

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