If you need to take out a $70,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.9% interest for 10 years, a federal unsubsidized loan with 5.9% interest for 10 years, or a private loan with 7.0% interest and a term of 16 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized. A) Find the total cost of the subsidized loan? B) Find the total cost of the unsubsidized loan? C)Find the total cost of the private loan? D) Which loan has the overall lowest cost, and how much would you save over the other options? E) How much would the subsidized loan save you over the federal unsubsidized loan, and the savings on the private loan?
If you need to take out a
student loan
years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with
interest for
years, a federal unsubsidized loan with
interest for
years, or a private loan with
interest and a term of
years? How much would you save over the other options? All payments are deferred for
months after graduation and the interest is capitalized.
A) Find the total cost of the subsidized loan?
B) Find the total cost of the unsubsidized loan?
C)Find the total cost of the private loan?
D) Which loan has the overall lowest cost, and how much would you save over the other options?
E) How much would the subsidized loan save you over the federal unsubsidized loan, and the savings on the private loan?
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