Question 22.42

12. Suppose that your federal direct student loans plus accumulated interest total $31,811 at the time that you start repayment, and the interest rate is 4.29%.

  1. If you elect the standard repayment plan of a fixed amount each month for 10 years, what is your monthly payment?
  2. How much will you pay in interest?

However, because your accumulated outstanding federal loans total more than $30,000, you can elect to repay over 25 years instead. If you do that:

  1. What is your monthly payment?
  2. How much in total will you pay in interest?