[tkmd]

I have a student loan that I have consolidated with nelnet at 3.125% I'm having problems calculating the details of the loan (using an app called loan calc- better suggestions, freeware please?)

How is the interest calculated on a student loan- is "effective", "compounded" or "nominal"? Once I choose one of those options it asks me if the time period it is compounding from continuous to annually. That one really stumps me. Any help?

[Peter]

I'd love to know what the difference is by those three types of loan. I thought you only had compounded loans.

[ghporter]

Check out the calculator here. I think just about every student loan is run the same way as a car loan: interest is compounded continuously.

[Peter]

quite, it'd be a weird world if you took out a loan and the interest got put into another bank account ...