Random Fin Aid Question

[jbshane]

I received my fin aid package from Hastings and I'm trying to dig my way through all of my options.

My question is this: in trying to calculate how much I will eventually pay out to my lenders once I have completely paid off my loans, I need to know how often the interest compounds on Stafford and Perkins loans.  Is it daily, weekly, monthly or annually (I'm assuming either monthly or annually)?

Anyone have any idea?

[ruskiegirl]

I haven't had a math class since my freshman year in college.  That sounds like more math than my brain can handle.   I'm just gonna let my daddy's accountant look at the loan offers I have and give me the numbers I will actually understand.

[Cherry]

This might help  = doesn't say how they compound the intrest but it does give totals of repayments if they go up to a 8.25%


http://www.studentaid.ed.gov/students/publications/student_guide/2003_2004/english/types-stafford-examples.htm


http://www.studentaid.ed.gov/students/publications/student_guide/2003_2004/english/types-fedperkinsloan.htm

[jbshane]

thanks for the help cherry.  i've got all the info on interest rates, but still searching for when and how they are compounded.

anyone out there know? - i've scoured the internet and can't seem to find a thing.

[jbshane]

I haven't had a math class since my freshman year in college.  That sounds like more math than my brain can handle.   I'm just gonna let my daddy's accountant look at the loan offers I have and give me the numbers I will actually understand.

some of us don't have this luxury...

[jgruber]

Random Fin Aid Answer:  Maybe

[Cherry]

I got really curious about this myself – since you brought up the question.  I too feel like I have looked up down and sideways on the Internet, I hate to say this but you may need to just call the department of education directly.

Sorry I could be more helpful.

P.S. When you do find out could you post it, I am darn curious myself.

[jgruber]

This not certain, but I believe it is monthly.  You can ask a bank that handles those loans.  They could tell you.

Also keep in mind that they get to charge various fees and the last time I looked they get  some of the interest up front.  Frankly, I think these loans are more gravy for banks than help for students.  This is coming from a father who has paid off five PLUS loans.

I received my fin aid package from Hastings and I'm trying to dig my way through all of my options.

My question is this: in trying to calculate how much I will eventually pay out to my lenders once I have completely paid off my loans, I need to know how often the interest compounds on Stafford and Perkins loans.  Is it daily, weekly, monthly or annually (I'm assuming either monthly or annually)?

Anyone have any idea?

[jbshane]

cherry - i'll be sure to post if/when i found out.  i was on the phone with both bank of america and citibank last night, and i forgot to ask this question.  by the time i remembered, their customer service line was closed for the night.

jeffjoe - i think you're right that it's monthly, but i just need to confirm.  you're also right about these loans being great for the banks - they wouldn't do it if they didn't make money off of it.  unfortunately, i have no other route to go, because working during the school year is, plain and simple, not an option for me.  i guess the best thing i can do is work to pay them off as quickly as possible, so as to give the bank as little extra money as possible...

[jbshane]

one more thing - i know that bank of america charges a 3% origination fee up front, but not sure what citibank charges.