<p>If I pay off my loan right now (it's only been about two months), will I be charged interest? How do they charge you interest on the loans? Is it after a certain period?</p>
<p>yes, you will be charged interest. </p>
<p>But the questions that need to be asked:
1. Do you understand how loans work? We as a, Nation, are in a heap big trouble because of the subprime, National Debt, and other debt programs that people did not really understand, was not informed correctly, or outright fraud and deceit. </p>
<ol>
<li>Ask yourself a question: If you had a bunch of money and you lent a lot of money to some nice person, and that person does not pay you RENT for that money, How would you react? </li>
</ol>
<p>When you go to a bank, and you deposit a Bunch of money into your savings account, and the Bank does not pay you Interest (you are really LOANING your money to the bank), How fast would you change banks? </p>
<p>When you work for somebody, do you not expect to be paid? Are you not Renting your Knowledge or Time? </p>
<p>Interest = Rent.</p>
<p>When there is an great "supply" of money, The Rent is low. </p>
<p>When there is an great "demand" for money, The Rent is high.</p>
<p>It really depends on the type of loan. If you have a subsidised loan the interest is being paid by the government while you are in school so you will not be charged interest if you repay it now. Any other type of loan the interest will have started the moment the loan was paid to you (or your bursars account) so you will have to pay the interest when you repay the loan. If you have had the loan 2 months you will owe 2 months interest. </p>
<p>You should have received paperwork and signed a bunch of paperwork (or been given it on the internet and signed electronically) before the loan was disbursed to you. You need to go back and read over that information to find out the specifics of how the interest works on your particular loan. It will vary depending on the type of loan federal subsidised, federal unsubsidised, private etc.
It is important to always read the terms of any loan before you sign for it. For instance you may run across loans in your future that actually charge penalties for early repayment. How interest is charged can make a big difference in the final cost of the loan. For instance ,depending on the terms of the loan, the interest charged monthly may be compounded - ie month 1 you are charged interest on the original loan, Month 2 you are charged interest on the original loan plus on month ones interest (which is also being effectively loaned to you if you are not being asked to pay it back on a monthly basis). Go back and read what you signed - we can only guess as we do not have your paperwork.</p>