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P

Principal

The total amount borrowed on a loan, and/or the amount you still owe on that loan, separate from interest. So if you have taken out $10,000 in student loans at an interest rate of 4.66%, your principal for that loan is $10,000. A few years down the road, when you have paid off some of the loan and have $6,000 remaining, then $6,000 is your new principal.

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