I think she is mistaken on a few things. Lump sum payments should go against the principal and the interest will reduce as the principal is payed back.
It is still daunting! Here is my quick math.
For the interest to be $30 a day, the loan would have to be $270,000 at 4%. This means it probably is going to take 20 years to pay back to make the payment manageable, which is $1,600 a month. In total, she’d pay $120,000 in interest.
All this because she was not properly taught finances and the loan industry is predatory.