Outstanding Interest

What is Outstanding Interest?

Outstanding Interest meaning Interest is a loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. (Generally, a loan servicer collects payment for the lender.) The expense is calculated as a percentage of the unpaid principal amount of the loan. Outstanding interest is the dollar value of the accrued interest balance on a loan.

 

reference: Federal Student Aid – Glossary

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