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Old 07-24-2012, 07:40 PM #1
expaintgunner
 
 
Join Date: Jul 2012
Student Loans

So not really an investments question but figured this would be the place to ask. My mom took care of most of my finances (sad but she was a former accountant/finance advisor so it made sense). Now that I am about to graduate from school I have to take control of my finances.

So for my student loans I was trying to look up how the interest works as far as compounding interest. How often do student loans compound? Daily? monthly? quarterly? yearly?. I couldn't find much info. Thanks if anyone knows or can point me in the right direction as I don't have all my loan info at my fingertips.
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Old 07-25-2012, 07:57 AM #2
Zacko23
 
 
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Join Date: Mar 2008
Location: Suburban Philadelphia
There are several ways compound interest is calculated, the most common is 365/360 basis. You'd need to check your loan documents to see how your Lender is calculating your interest. Your loan documents should also define the equation for the interest calcuation the lender is using. To your question about when compounding takes place; in most cases that is daily. The best thing to do is read the loan document (just the promissory note). All that information is mostly likely on the first page.
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