5. Give an estimate as to how long it will take the student to pay off his debt in each situation. Explain how you
came up with your estimate. Based on your estimate, about how much has he actually paid the bank for his
$20000 loan?
6. Based on your estimations, which payment plan should the student choose? Why?
Part E
In July of 2013 Congress voted to keep interest rates on subsidized Stafford Loans at 3.4% to 6.9%.
1.
What impact will this have on a student who takes out a loan for school after 2015?
2. How much interest will be on a $20,000 student loan if the interest level were to reach the maximum
predicted rate?
3. How long would it take the student to pay back the loan, if only a minimum of $200 a month was made?
4. How much money would the student actually pay on the loan, if only a minimum of $200 a month was made