I was wondering if anyone knew the details on how the interest of a Unsubsidized Stafford loan accrues. Is it compound or annual.
Perhaps answering the following hypothetical question will better answer the question i am asking:
Consider a student that has $24,000 (i know, we all wish we only had that much, but just making the numbers easy).
Now let us say the student receives $12,000 in Subsidized Stafford (i know over cap) and $12,000 in unsubsidized Stafford each year.
Now assume the student has access to $1,000 monthly and pays off her unsubsidized Stafford loan off monthly every semester. Would any interest have accumalted on her loan-that is, does interest accumalte everyday, or only at the end of the year.
Hope that was not too confusing. Any help would be appreciated.
Take care,
bader
Perhaps answering the following hypothetical question will better answer the question i am asking:
Consider a student that has $24,000 (i know, we all wish we only had that much, but just making the numbers easy).
Now let us say the student receives $12,000 in Subsidized Stafford (i know over cap) and $12,000 in unsubsidized Stafford each year.
Now assume the student has access to $1,000 monthly and pays off her unsubsidized Stafford loan off monthly every semester. Would any interest have accumalted on her loan-that is, does interest accumalte everyday, or only at the end of the year.
Hope that was not too confusing. Any help would be appreciated.
Take care,
bader
