Source: The College Investor How Monthly Interest Accrues On Student Loans?This question is about student loan interest rates. Interest on most student loans accrues daily, but it added to the loan balance monthly, based on the simple interest formula. What simple interest means is that the interest is calculated only on the outstanding principal balance, not the added interest (if any). The amount of student loan interest that accrues monthly can also vary based on the student loan repayment plan you’re on. For example, the SAVE plan waives any unpaid interest each month as a subsidy. Here’s …