Annual Percentage Rate
Annual Percentage Rate, or APR, is the total cost of your loan at a yearly rate, incorporating the variable interest rate, supplemental fee, and accrued interest.
- Variable interest rate:
- Rate used by lenders to calculate a borrower’s monthly payments.
- Supplemental fee:
- Fee assigned by lenders to cover the risk of lending unsecured money.
- Accrued Interest:
- Interest that builds up while a student is deferring his or her payments. Since the student does not make any interest payments while the loan is in deferment, interest accrues and is added onto the loan amount.