Sallie Mae is a lender for student loans. Using Sallie Mae, students are able to afford colleges by borrowing money now and repaying the money at a later date. When repaying the money, the student needs to pay both interest and payment. To see how much you pay in interest and payment each month, you should create an amortization table for your Sallie Mae loan. After creating this table, you can see how changing your monthly payment will affect the amount of interest and repayment period on the loan.
Draw five columns. Label the columns "Payment Number," "Payment," "Interest Paid," "Principal Paid" and "Remaining Principal."
Number, starting with 0, the amount of loan payments under the "Payment Number" column.
Write the amount borrowed in the "Remaining Principal" column for row 0. Put dashes in the remaining columns in row 0.
Write your payment amount in each row for the "Payment" column. Your payment should be the same for each month.
Divide your annual interest rate by 12 to find the monthly interest rate. Then multiply the monthly interest by the amount in the "Remaining Principal" column from the previous payment row. Enter this amount in the "Interest Paid" column.
Subtract the number in the "Interest Paid" column from the amount in the "Payment" column. Enter the result in the "Principal Paid" column.
Subtract the "Principal Paid" column from the previous payments "Remaining Principal" column and put the result in the "Remaining Principal" column.
Carter McBride started writing in 2007 with CMBA's IP section. He has written for Bureau of National Affairs, Inc and various websites. He received a CALI Award for The Actual Impact of MasterCard's Initial Public Offering in 2008. McBride is an attorney with a Juris Doctor from Case Western Reserve University and a Master of Science in accounting from the University of Connecticut.