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How does Earnest calculate interest?

Because Earnest does not charge origination fees, our interest rates are usually equal to our APR, or "annual percentage rate." 

To calculate your accrued interest, we use the "simple daily interest" method. This means that interest accrues each day in an amount equal to 1/365 times your APR multiplied by your remaining principal owed. For our bootcamp loans, interest accrues at a simple daily rate even while you are in a deferment period.

Note: personal loans originated by Earnest may be serviced by either Earnest or SST. For information about SST, click here. If you're unsure whether or not your loan is serviced by SST, please log into your account, and click on the "My Loans" tab. If the "My Loans" tab shows a "Loan Details" button, your loan is serviced by Earnest. Otherwise, it is operated by SST.

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