Chapter 5.4, Problem 46E

To get your bachelor’s degree, you incurred $\$50,000$ in debt through a federally funded loan. You are required to pay this loan off in $tenyears$. You did not qualify for a Direct Subsidized Loan with an interest rate of $3.86\%$. Instead, you qualified for a Direct Unsubsidized Loan with an interest rate of $6.8\%$. You start making payments at the end of your $six-month$ grace period.

a. Interest accrues monthly during your grace period. Find the amount you owe at the end of the grace period.

b. Find your monthly payment.

c. You were unable to make the monthly payments from $\left(b\right)$, and you were placed in the Extended Repayment Plan. This allows you to pay your loan off in $twenty-fiveyears$. Find your monthly payment.

d. Find the total amount you will pay under the Standard Repayment Plan in part $\left(b\right)$.

e. Find the total amount you will pay under the Extended Repayment Plan in part $\left(c\right)$.