How Student Loan Interest Accrues
The gist
Student loans accrue interest by adding a percentage of the loan balance over time, which means the amount owed grows unless payments cover the interest.
Explain like I'm 5
Imagine you borrow some money to buy a toy, and every day, the toy store adds a tiny bit more to what you owe until you pay it back.
Big picture
Understanding how interest accrues helps students manage their debt better and plan repayments to avoid growing balances, which can affect financial health after school.