Researchers find optimal way to pay off student loans

After graduating or leaving college, many students face a difficult choice: Try to pay off their student loans as fast as possible to save on interest, or enroll in an income-based repayment plan, which offers affordable ...

Finding the optimal way to repay student debt

The burden of student loans in the U.S. continues to grow unabatedly, currently accounting for a total of $1.7 trillion in household debt among nearly 45 million borrowers. "The introduction of income-based repayment over ...

Rich nations fall short on climate finance pledge

Wealthy countries are falling short on a decade-old promise come due to ramp up climate finance for the developing world, according to a semi-official report released Friday.

One-third of American households face troubles paying bills

One-third of American families have lost income since the beginning of shutdown triggered by the coronavirus pandemic, with such losses striking families from all economic groups, according to a new nationally representative ...

Climate change pushes Italy beekeepers to the brink

Unusual weather driven by climate change is wreaking havoc on bee populations, including in northern Italy where the pollinating insects crucial to food production are struggling to survive.

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Loan

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount.

The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

This text uses material from Wikipedia, licensed under CC BY-SA