Student Loan Forgiveness Interest Calculator
Calculating student loan interest begins with determining a borrower’s daily interest rate. To get your daily interest rate, divide your annual interest rate by 365. Here is how that would seem at a 6% interest rate.
.06 / 365 = .00016
To get your daily interest charge, multiply your daily interest by the outstanding balance on your student loan. Here is how you would determine your daily interest rate for a loan balance of $50,000.
$50,000 x .00016 = $8
TitanPrep Student Loan Forgiveness Interest CalculatorFinding a borrower's daily interest rate is the first step in calculating student loan interest. Divide your annual interest rate by 365 to get your daily interest rate. Here’s what that would look like for an interest rate of 6%. There you have it. As long as your student loan balance is $50,000, you’ll accrue $8 in interest per day or $240 per month. When you take out a student loan, the lender calculates how much interest you’ll pay in total over the life of the loan (if paid as agreed). These total interest charges are reflected in your fixed monthly payment. Like most installment loans that follow an amortization schedule, more of your payment goes toward interest at the beginning. As you pay down your balance, a higher percentage of each payment goes toward the principal.
Feel free to use our Student Loan Forgiveness Interest Calculator
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The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
Student loan interest FAQs
You probably have a lot of questions about student loan interest. Here are some of the most commonly asked questions:
When interest is paid on top of the principal, compound interest results, raising the amount of future interest payments. Student loans normally do not handle interest in this manner when paid as agreed. However, during a forbearance or deferment period or when a borrower terminates an Income-Driven Repayment (IDR) plan, unpaid interest may be capitalized (a.k.a.)
There are certain times that the Department of Education will pay some or all of a borrower’s federal student loan interest on their behalf. First, the government will pay the interest charges on subsidized student loans while the borrower is enrolled at least half-time in school. Second, borrowers may qualify for a subsidy on unpaid interest charges during the first three years of repayment on the IBR and PAYE plans and at all times while on the REPAYE plan.
The IRS will allow you to claim a tax deduction for the student loan interest that you pay on your own student loans and your spouse or dependent’s student loans. Currently, the student loan interest tax deduction is capped at $2,500 per year.