Reported 2 days ago
Calculating student loan interest is essential for budgeting and financial planning. Federal loans typically have fixed rates, while private loans can vary. Interest can accrue immediately and is usually calculated using a simple formula based on daily rates, outstanding balances, and billing cycles. Understanding how interest is computed, including potential capitalization, can help borrowers manage their debts more effectively. Additionally, the interest payment might be tax-deductible depending on the borrower's income.
Source: YAHOO