<prompt> Human: Im fairly ignorant when it comes to financing, so I was shocked when I actually paid attention to my student loan payment this month and saw that so much was just going towards the interest.Here is a breakdown of my recent paymentsWhy so much towards interest?Here is a breakdown of one of my payments. What is this Group C thing and why is it sucking up so much of my payment, when there is no principal involved.Im new to the community and will probably be subscribing going forward. If anybody can give me some answers I would greatly appreciate it.Thanks in advance.EDIT: Thanks all for the responses. Ive got a firm grasp of principal v interest and amortization. Im looking at setting up a budget for a 4 year debt free plan. You guys rock. Im looking forward to lurking.1010 Excellent community  <response>: Its because of how a loan is amortized. There are amortization calculators out there if youd like to simulate this effect.If you want to learn more about how APR is calculated, check out the Khan Academy lessons on interest. 