Dorm Loan.?

Hello.

My sister is attending the university, and she lives in a dorm.

However, she told me that the dorm fee charges $10,000 each year by a bank loan.

If she stays in a dorm for four years (including this year), she should pay $80,000 to her bank by the time she graduates the university.

I think something is wrong with that calculation because the fee is too much. If that is true, it looks that a bank's interest is too high.

How come the $40,000 doubles up to $80,000 in four years?

And, how can a dorm charges $10,000 each year when she covers it by a bank loan?

Dorm Loan.?

Maybe she meant per semester. But then again it's a rather steep price. I know our fees are only 6.000 a semester, so maybe she just means by the time she pays it back in which case would be just as you pointed out, quite a hefty interest rate.

Dorm Loan.?

yeah i think it might be the interest being really high...the longer u wait to pay the more u have to pay. interest rates should be around 6% and up?