<p>I'm considering taking the loan but I'm confused as to how the interest rate works.
So if I took the $3500 loan and I have graduated and it has been one month after the grace period, how much would I pay if I were to fully repay the loan?
Would the interest I pay be 4.5%(the interest rate) divided by 12 which equals 0.375%, multiplied to $3500? So I would pay $3513.</p>
<p>Yes, that is roughly how it works. The interest calculation is a little more complex than that, but basically on a $3500 loan at 4.5% interest, your first month’s interest would be slightly more than $13. Your lender would be able to give you a payout figure at any time that you asked. You can use the form on this page to print out a schedule showing monthly interest over the life of the loan:
[FinAid</a> | Calculators | Loan Calculator](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>