step three. It usually takes 21 age on average to repay student funds

step three. It usually takes 21 age on average to repay student funds

dos. Education loan attention compounds daily.

Let’s say you graduate with the average amount of debt ($29,800) and the average annual interest rate of 5.8%. Since interest on student loans compounds daily, that means the day after graduation, you would owe an additional $4.74 for a new balance of $29,. The day after that, interest would be re-calculated based on your brand-new harmony and charged again. After a month, the total interest added to your loan payment would be about $150. And like a snowball rolling downhill, your debt grows daily until you eventually pay it off. Continue reading “step three. It usually takes 21 age on average to repay student funds”