Stafford loans are the most popular form of student loan in the United States. The current interest rate on a Stafford loan is 4.34​% per year. If you borrow ​$29,000 to help pay for your college education at the beginning of your freshman​ year, how much will you have to pay at the end of your​ freshman, sophomore,​ junior, and senior years for this​ loan? This is a total of four years over which the original loan will be repaid. The annual loan payment will be ______

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.