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Student Loan Repayment Information... Continued From Previous Page How can I calculate the amount of interest on my own?To determine the amount of interest you will be required to pay each month, use the following formula called the Simple Daily Interest formula: Simple Daily Interest Formula Practice Example: Let's say the remaining balance on your loan is $9,500.00. You sent in a payment of $160.00, 32 days after your previous month's payment. Your interest rate is 8.25% (interest rate factor is .00022587). 32 (days) x $9,500.00 (PBO) x .00022587 (interest rate factor) You would pay $68.66 toward interest and $91.34 toward the principal balance. This would leave you with a loan balance of $9,408.66 after the $160.00 payment was applied. Interest Rate FactorThe interest rate factor is used to calculate the amount of interest that accrues on your loan. It is determined by dividing your loan's interest rate by 365.25 (the number of days in a year). See the following table to see some examples of interest rate factors.
Why does the amount of interest



