How is Interest Calculated on Student Loans?

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  • Опубликовано: 7 авг 2024
  • Do you know how interest is calculated on student loans? Is your student borrowing student loan debt and you want to know how student loan interest works? This video will explain exactly how it is calculated, including how it differs based on the type of student loans your student receives (or you co-sign for).
    00:00 Intro
    01:22 What is Interest?
    01:55 Current Interest Rate for Undergraduates
    studentaid.gov/understand-aid...
    03:03 Key Terms to Know
    05:11 How to Calculate Loan Interest
    06:45 Calculating Accumulating Interest
    08:48 Capitalization
    09:25 Student Loan Calculator
    smartasset.com/student-loans/...
    At The Scholarship System, we redefine paying for college to help families build strong financial futures. The Scholarship System teaches a step-by-step process to secure college funding, primarily focusing on scholarships, through our online courses and resources.
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Комментарии • 19

  • @johnhoward7987
    @johnhoward7987 11 месяцев назад

    Thank you for this video

  • @khalidabdirahman4524
    @khalidabdirahman4524 2 года назад +2

    Hello,
    I just watched your videos in which you talked about Scholarships and I found it extremely helpful!!
    I have have a few questions though:
    I live in Minnesota (twin cities area) and I have applied to the FAFSA scholarship but I am having issues finding other scholarships that fit the descriptions you suggested i.e: Community scholarships and Activity based scholarships.
    Do you know what the best place for me to start is?
    (BTW: I am a senior in High school)
    Again, your videos are very helpful!!

    • @TheScholarshipSystem
      @TheScholarshipSystem  2 года назад

      Hi, Khalid! Here is a link to an article from our blog that you may find helpful in searching for local scholarships: thescholarshipsystem.com/blog-for-students-families/how-to-find-local-scholarships-to-pay-for-college/

  • @setholson2878
    @setholson2878 Год назад +1

    As I pay down the principal does the interest accrued change each month? In your example of $5000 with monthly interest accrued of $15. If I could pay 100$ that month and got it down to $4915 (5000+15-100), is $4915 my new principle for calculating interest? Or is 5000 always my principal no matter how much of the loan I've paid off?

    • @TheScholarshipSystem
      @TheScholarshipSystem  Год назад +1

      The interest accrued is based on the new principal balance. So over time, the interest paid will be less and less, and your payment will be going more towards the principal balance.

  • @maxp6521
    @maxp6521 Год назад

    I used the calculator you linked and I'm not getting the same total payments as you did in your video. I'm assuming because its not an unsubsidized calculator but instead a subsidized calculator?

    • @TheScholarshipSystem
      @TheScholarshipSystem  Год назад +1

      That may be it, but also, please keep in mind that this video was released in 2021 and the interest rates have changed since then!

  • @zeke_4271
    @zeke_4271 2 месяца назад

    Can you still get scholarships if you are in grad school ?
    I’m currently in an EdD program, first gen Hispanic student.
    Oldest in my family. Not sure what or who to ask. But my student loans are starting to add up

    • @TheScholarshipSystem
      @TheScholarshipSystem  2 месяца назад

      This article might be helpful: thescholarshipsystem.com/blog-for-students-families/pay-grad-school-without-student-loans/

    • @TheScholarshipSystem
      @TheScholarshipSystem  2 месяца назад

      Yes. At the graduate level, you may also want to look for assistantships and fellowships.

  • @danielaoliva869
    @danielaoliva869 11 месяцев назад

    Hi are there scholarships for medical school?

    • @TheScholarshipSystem
      @TheScholarshipSystem  11 месяцев назад

      Absolutely. They are a bit harder to find that scholarships for undergraduate students, but they do exist. This blog post may help as well: thescholarshipsystem.com/blog-for-students-families/pay-grad-school-without-student-loans/

  • @Rudy1150
    @Rudy1150 Год назад +3

    its sad, all i see are tiktoks with THOUSANDS of comments by graduates that dont understand how they have paid their loans for 10 years and barely paid off the interest. of course they are paying the min payment. So much information on youtube that doesnt get to the right people.

  • @haydenacker4690
    @haydenacker4690 Год назад +1

    But 3.65/365 is 0.01 not 0.0001 - What am I missing here

    • @TheScholarshipSystem
      @TheScholarshipSystem  Год назад

      3.65% = .0365. You need to convert the percentage to a fraction prior to dividing by 365 days.