Trying to figure out how much debt I will have

[Strider_91]

Hi all,

I'm going to my state school which will cost me 39k a year in loans at 6.8% interest. This is for living and everything because I am living at home. I am trying to find a calculator to figure out how much debt I will come out with the day I graduate school. For some reason I can't find a calculator that allows me to put in taking 39k for 4 seperate years, they are only allowing for 1 lump sum.

If someone can either explain the calculation, point me to a calculator that allows this , or do the math that would be appreciated.

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[RangerBob]

Hi all,

I'm going to my state school which will cost me 39k a year in loans at 6.8% interest. This is for living and everything because I am living at home. I am trying to find a calculator to figure out how much debt I will come out with the day I graduate school. For some reason I can't find a calculator that allows me to put in taking 39k for 4 seperate years, they are only allowing for 1 lump sum.

If someone can either explain the calculation, point me to a calculator that allows this , or do the math that would be appreciated.

Multiple 39k by 0.068. That's how much interest you will accrue each year. (Well, not quite, you typically only borrow half of the full amount at the start of the school year).

39,000 * (0.068*4) + 39000 * (0.068*3) and so on... That's how much interest you'll accrue total while in medical school. Your first year loan will accrue interest for four years, your second year loans accrue interest for three years, and so on...

If you want the more exact number you need 8 calculations--you would calculate two first year loans. One dispersed in summer that accrues interest for 4 years, one that is dispersed in winter that accrues interest for 3.5 years.

While you're in school your interest does not capitalize, so it's all simple interest.

 

[sazerac]

AAMC has by far the best tools for analyzing loans and repayment plans. You can enter loans by semester, multiple interest rates, it understands the intricacies of interest and capitalization, knows about residency vs attending, and is up on all the federal repayment plans and forgiveness.

The suite of tools is at AAMC FIRST, and if I remember correctly, you want the AAMC MLOC tool for your loans. Just google away, they are easy to find.