Question 676239: Student loans are a hot discussion topic today both in the news and at home. Those of us with student loans, and also those of us thinking about getting a student loan for ourselves or a family member, need to think about paying back not only the initial borrowed amount, but also the interest on top of the loan. For example, subsidized Stafford Loans do not start accumulating interest while a student is in school, and the student does not need to make any payments during that time. After the student has been out of school for six months, the interest then starts to accumulate on the loan, and the student must begin making regular monthly payments. Student loans are also not forgivable in bankruptcy.
•Give a realistic student loan amount for an individual that attended a university for at least 2 years. (You may choose to use the total cost of tuition for your program at CTU.)
•Research and find the current average interest rate for student loans. Be sure to reference the site where you found your interest rate.
Now, assume that the loan you chose above is a subsidized Stafford Loan and that you have been out of school for six months are going to begin making your monthly payments. You are starting to really think about your student loan and all of the interest that you will have to pay.
•Now that the interest is starting to accumulate on the loan, how much interest will accumulate after one year?
•How much interest was charged at the end of the first day?
◦Do you find this number surprising?
The loan agency has allowed you to defer the loan for one year if you pay 8% of the original loan today. Therefore, you will not have to make monthly payments for one year, and since your loan is a subsidized Stafford Loan, no interest will accumulate during that year.
•What is the amount that you would send the loan agency to defer the loan?
•What is the new loan amount?
•You want to find out how much interest will accumulate on your loan if you decide to make the 8% payment. Find the interest on the new loan amount, after paying 8% off, for one year and then again for one day.
•Do you think that making an 8% payment on the loan is worth it when viewing the interest savings at the end of a day and at the end of a year?
•Discuss the advantages and disadvantages of deferring the loan for one year.
Show your work please!!!!!!!!!
Answer by solver91311(24713)   (Show Source):
You can put this solution on YOUR website!
This is an entire assignment rather than a single question. Ask a single specific question, telling us what it is that is giving you difficulty and showing what work you have done so far.
John
Egw to Beta kai to Sigma
My calculator said it, I believe it, that settles it
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