Quick Easy Question

[pacman8794]

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Ok, so I'm trying to figure out how much I'll have to pay off after grad school, but I'm confused on something. I went to a website which had a loan calculator, but I'm not sure I'm entering the right amount. If my loan total borrowed is x amount do I enter that amount into the calculator and then the calculator figures out the interest for me? I know that interest piles up on top of what you borrow so I' not sure exactly how much to add to x to make it a reasonable amount. Any know an accurate number?

 

[Habeed]

No, it doesn't work that way. Interest doesn't compound until graduation.

 

[Postictal Raiden]

No, it doesn't work that way. Interest doesn't compound until graduation.

if I am wrong someone corrects me, but I thought that all educational loans other than the subsidized stafford loan accumulate interests during school. Therefore, by graduation, you will owe the money you borrowed plus the interests accumulated on that amount.

 

[Habeed]

Yes, but you don't owe interest on the interest. You only start owing interest on interest when the loan 'capitalizes', and all of the interest you didn't pay gets added onto the total loan. That happens at graduation.

 

[Postictal Raiden]

Yes, but you don't owe interest on the interest. You only start owing interest on interest when the loan 'capitalizes', and all of the interest you didn't pay gets added onto the total loan. That happens at graduation.

thanks for clarifying👍