Assuming that you have a loan where interest is accruing ( interest on direct subsidized federal loans is paid for by the Dept of Education while you're in school until six months after graduation), it accrues daily through a simple daily interest formula. The formula is:
Outstanding principal balance x number of days since last payment x interest rate factor (interest rate/number of days in the year) = interest amount
Here's an example:
Let's assume after your last payment you have a $25,000 balance remaining and it's been 29 days since your payment was applied. Your interest rate is 3.86%. The calculation would be:
x 29 days
x .00010575342 (.0386/365 days)
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