A student loan is a government loan that is available to students at a college or university in order to help them pay their expenses.

The student loan interest is normally added to your principal, increasing your student loan balance.

**Formula to calculate student loan interest.**

- Calculate your daily interest rate, this is done by dividing the annual interest by 365.
- Calculate the amount of interest your loan accrues per day.
- Find your monthly interest payment.

**Example:**

Calculate a student’s loan interest if the amount of loan for her entire course was $ 1,000 and the annual interest rate was 10%.

Therefore, we will begin by calculating the daily interest.

**= 10 รท 365**

**= 0.0274**

Then calculate the daily interest amount by multiplying the principle by the daily interest rate.

**= 0.0274 x 1,000**

**= 27.4**

Lastly, find the month payment by multiplying the daily interest by 30.

**= 27.4 x 30**

**= 822**

Therefore, the student’s loan interest by month is $ 822.