<p>Are there any types of loans, which you can return without paying interest? For example, returning loans on pre-decided installments (fixed amount) for a fixed time period. </p>
<p>Any links/references?</p>
<p>Thank you.</p>
<p>Even if you return the loans on pre-decided installments, the interest is "folded into" the payments. For example, fixed mortgages have specific payments from month to month, but the interest is amortized into the amount you pay each month. At the beginning of the repayment period, more of the payment goes to pay interest; towards the end of the repayment period, more of the payment goes to pay down the actual balance of the loan.</p>
<p>The only no-interest loans I know of: those from mom & dad or other folks who love you.</p>
<p>I don't understand, because I don't have a lot of experience/knowledge about money-related stuff.
I was saying that, for example, suppose you buy a car. Pay $x immediately, then pay $y every month for the next 5 years, and you're done. Nothing else.
Is that what you're saying?
If yes, then that's what I want.</p>
<p>there is NO such thing as a no interest loan for college. They aren't car companies. No 0% interest loans for college</p>
<p>Subsidized Stafford loans have the interest paid by the government while you are in school. So do Perkins loans. I don't know if there are early repayment penalties for these loans, but if there aren't, you might be able to pay them off in a lump sum after you graduate (effectively getting an interest free loan). </p>
<p>Every other loan on the planet accrues interest from the day the money is disbursed. Some of them will not require you to pay the interest until you start repaying the loan (like after you graduate), but the interest is accruing all along. With many loans you can pay the interest as you go along.</p>
<p>Someone will correct me if I'm wrong.</p>
<p>Don't forget to factor in the tax deduct up to a certain income level for education loans. One could get into the math of present value, future value etc etc!! hehe</p>
<p>
[quote]
I was saying that, for example, suppose you buy a car. Pay $x immediately, then pay $y every month for the next 5 years, and you're done. Nothing else.
Is that what you're saying?
[/quote]
Yes, that's what I'm saying. If the loan has interest, then if you add up the amounts you pay over the next five years, it will be more than amount of the car if you had paid cash. Let's say the car cost $18,000. The loan carries interest. You put $2,000 down and finance $16,000. If you add up all of your monthly payments, plus the $2,000, you'll find that over the 5 years, you've actually paid $23,000, even though you're paying the same amount each month. That extra $5,000 is the interest on the loan.</p>
<p>Repayment of education loans works the same way. Virtually all repayment plans have a set amount that you pay each month, unless they are variable rate loans. I paid a set amount of money every month (around $200) to repay my student loans, but I still paid interest, since I paid more money in the end than I would have had I been able to pay cash instead.</p>
<p>Does that make sense?</p>
<p>Other than car loans and some other consumer goods (0% financing until 2011!), there aren't any other types of loans that have no interest.</p>
<p><<consumer goods="" (0%="" financing="" until="" 2011!)="">></consumer></p>
<p>And for most of these, you have to pay in FULL by that time or you will owe interest from the time you bought the product. MANY many many people get caught in this.</p>
<p>OK, I think I understood everything posted up till now, except for sueinphilly's last post. </p>
<p>I understand what you're saying about how the interests adds up and you pay more in the end.</p>
<p>In short, here is what is OK with me,
You return the loan installments, paying a pre-decided fixed amount for an x amount of time, and you're done.</p>
<p>What is not OK with me is that you pay y% interest for an unknown period, and... just what usually happens.</p>
<p>So please tell me more details, are all educational loans like the one I said ,on installments? </p>
<p>Could you give me names. What do you call the ones in the second type.</p>
<p>I am sounding weird for some unknown reason, am I confusing you?</p>
<p>my last post was referring to consumer loans where they say you can buy furniture with no payments or interest until X.</p>
<p>Usually that means you have to pay in FULL by X</p>
<p>That is not how educational loans work.</p>
<p>I suggest you look up "loan calculators" and see how interest adds up
FinAid</a> | Calculators | Loan Calculator</p>
<p>realize that if you borrow 10K now @ 7 % interest and you don't start paying it back for 4 years and don't pay the interest accruing during those 4 years, you will end up paying back 2X the original loan amount (assuming you pay it off over 10 years)</p>
<p>OK, but I'm still confused. I don't have a counselor to seek help from.
Can someone do me a huge favor and answer a few questions?
How many types of educational loans are there?
Are the repayment methods for all of them the same?
If no, what is the difference?"</p>
<p>Also, are there any types of educational loans as I was talking about above?</p>
<p>most people do this w/o a counselor</p>
<p>you need to do some research on your own</p>
<p>FinAid</a>! Financial Aid, College Scholarships and Student Loans
read every word</p>
<p>You could also search and read old threads on this board</p>
<p>The short answer is NO. there are no 0 interest loans that you can pay back over time after you graduate.</p>
<p>My question wasn't if there are loans with 0 interest.
I said that what as Chedva explained, the interest is added in your installments.</p>
<p>My question was:
**
Are there any educational loans in which the amount of each installment is the same (with interest added or not I don't care) and the number of installments needed to be paid (or amount of time) predecided?
**</p>
<p>This is my only question. If the answer to the question is Yes, then i requested links/references/names.</p>
<p>Thank you.</p>
<p>Yes to answer your question when you get a loan- say $ 10,000 and you pay it back- you can also get it @ a fixed rate and know when you will be done with the loan- whether it is for school or whatever as long as terms are fixed.
FinAid</a> | Student Loans</p>
<p>LOL.....Why would there be a loan without interest?</p>
<br>
<blockquote> <p>Are there any educational loans in which the amount of each installment is the same (with interest added or not I don't care) and the number of installments needed to be paid (or amount of time) predecided?>></p> </blockquote>
<br>
<p>Most loans are paid in the above fashion. The payback period is for a predetermined amount of time (e.g. 5 years or 10 years) with the payments also set for each payment. The only exception would be if you have a VARIABLE rate loan whereby the interest fluctuates. Then your payments could change from time to time during the repayment period.</p>
<p>Thank you for reading what I wrote and answering my question!</p>
<p>So is that how the Federal Perkins/Direct/Stafford loans operate?</p>