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To: fatboy

So the interest is, or isn’t accruing during this time?

I thought all excess monies beyond the simple interest require in that month was always put to principle. You describe paying a huge amount of interest, first.

Could you explain further?


5 posted on 10/28/2021 6:47:46 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: ConservativeMind

Additional interest is not a accruing now.

If you take out a student loan as a first semester freshmen and don’t start paying the money until you leave school, which could be many years later, then the interest that has accrued while you are in school plus the grace period becomes added to the principle not interest. Interest is calculated based on principle which is now much more than the amount borrowed.

As another poster stated, start paying back the loan as soon as the money is dispersed.

The reason we took out the loan was because we had a lot of money that was gifted to my daughter for her education but it wasn’t available to us until her second semester so the loan got us through the first semester and we basically put it out of our minds. Big mistake.


6 posted on 10/28/2021 7:01:18 AM PDT by fatboy
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