Simple interest takes your loan amount (say $10,000), and calculates the interest 1 time. If your interest rate is 5%, your total interest on the loan will be $500.... Compound interest, which is much more common for student loans, charges interest for the duration of the loan, calculated annually. This is where it gets scary. If you borrow the same amount ($10,000), at the same rate (5%), but it compounds annually and you make the minimum payments (which would be about $106/mo), your total interest paid over the course of the loan jumps to $2,728.
Federal Student Loans: The Ultimate Guide | Credible
"Interest rates for federal loans taken out between July 1, 2018 and June 30, 2019 are: - Direct Subsidized and Unsubsidized Loans t...o undergraduates: 5.05 percent - Direct Unsubsidized loans to graduate students: 6.6 percent - Direct PLUS loans to graduate students and parents of undergraduates: 7.60 percent"
Direct loans are from the federal government and can be subsidized or unsubsidized. A student’s first hope is that they can get as much subsidized student loan money as possible.... The advantage of direct subsidized student loans is that the U.S. Department of Education will pay all interest while the borrower is still a student and for a certain number of months after graduation.
Your Student Debt Isn't Hopeless: 7 Ways to Take Control Today | Student Loan Hero
Start by figuring out exactly how much you owe:
- Check the National Student Loan Data System (NSLDS) to find a full list of federal studen...t loans in your name.
- Review your credit report to verify it lists your NSLDS accounts accurately. Your credit report also will list your private student loan amounts.