How do I estimate my student loan interest payments?
I’m trying to figure out how much my student loan interest payments will be monthly.
The loan is for $5,000. The interest rate will be approximately 8.2% (it’s variable, though). The repayment window is 72 months.
How much per month would I pay in interest? I need to know before applying for the loan and getting stuck with a ridiculous interest rate.
I can only approximate your cost of borrowing because you do have a variable interest rate, but assuming simple interest – you would have to pay (5000 * 0.082 * 6) = $2,460 which means you will have to pay a total of $7,460. It breaks down to approximately $34.17 a month.
Honestly, despite the cost of interest, it’s worth having your education because you’ll make more money in the long run. it’s one of the best things to spend money on.
Good luck!
