Hi,
Dumping information because the more you know:
I have two loans the direct unsub (5.84%) and GRADPlus (6.84%). These loans will be staggered throughout my 3 years. How much is the interest rate while I am in school. Well I calculated by finding the daily interest accrual, principal *(IR/365). When I did the math to find out the potential interest rate accrual per month while in school, I came up with this graph:
By the end of my school, that will be about $35,000 added to my principal. If you graduate and do not pay any of the interest, then your loans will be "capitalized" and the principal will change, which will more likely lead to a higher daily interest accrual.
Example: Daily interest accrual for loan 1 is $1.64, once capped this daily interest rate will increase to $1.77.
They look like pennies now but with each loan disbursement it adds up.
TL;DR: try and pay your interest while in school, I know easier said then done.
Another thing, if you are planning to do the public service loan forgiveness, make sure you call your loan servicer before you are employed to ensure that you are in a qualifying repayment plan.
Thank you, and that is all.
Dumping information because the more you know:
I have two loans the direct unsub (5.84%) and GRADPlus (6.84%). These loans will be staggered throughout my 3 years. How much is the interest rate while I am in school. Well I calculated by finding the daily interest accrual, principal *(IR/365). When I did the math to find out the potential interest rate accrual per month while in school, I came up with this graph:
By the end of my school, that will be about $35,000 added to my principal. If you graduate and do not pay any of the interest, then your loans will be "capitalized" and the principal will change, which will more likely lead to a higher daily interest accrual.
Example: Daily interest accrual for loan 1 is $1.64, once capped this daily interest rate will increase to $1.77.
They look like pennies now but with each loan disbursement it adds up.
TL;DR: try and pay your interest while in school, I know easier said then done.
Another thing, if you are planning to do the public service loan forgiveness, make sure you call your loan servicer before you are employed to ensure that you are in a qualifying repayment plan.
Thank you, and that is all.
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