Serious student loan interest rate question. Option 1) 4.6% fixed interest rate over 7 years. Option 2) 3.57% fixed APR over 7 years, compounded daily, applied monthly. Cont.

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If it's 3.57% 'APR', it's an annual equivalent rate that already accounts for the compounding. Which is quite a bit lower than your other option.

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BCG is wrong he's confusing APR with APY. APY would include the compounding.

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My question is what's the difference between a regular fixed interest rate and a fixed APR rate? Looking for more laymans terms after reading a million articles. It's all financial gibberish to me. Could the APR rate somehow screw me over in the long run?

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It's in the last line. "Compounded daily,applied monthly"

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See and this is adding to the confusion ^ 🤣

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Agreed. Go with 3.57! Btw, who is offering that!?!?

I'm with P1! 👀

The 3.57 was offered by Lendkey

Fine fine. Still, it's only 3.63 APR or something. How long is the term OP?

OP convert your APR to APY, compounded daily will increase the gap by a good amount, APR is very misleading

Term is 7 years (I would do 5, but I'd like to control the payments a little more, save up for other things in life as well), but obviously I'll throw any extra money I have each month.

That's a smoking rate on a 7. Is it still a student loan... so deductible. 3.57 APR = 3.63 APY. Small potatoes.

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