Principal

Posted on

Principal is a term that has several financial meanings. The most commonly used refer to the original sum of money borrowed in a loan, or put into an investment. With respect to student loans, it is the remaining portion of the original loan amount, plus any interest that has been capitalized, that is still owed. Interest accrues on the outstanding principal balance. Similar to the former, it can also refer to the face value of a bond.

Sources
Investopedia.com
Studentaid.gov
Library.NCLC.org