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”