Refer to the following for Exercises 13 and 14. Your parents (if their credit rating qualifies) can take out a federal Direct PLUS loan to pay for the total remaining cost of your undergraduate education, after any other financial aid (such as a a federal direct student loan). The simple interest rate was 6.84% for 2015–2016. (There was also a loan origination fee of 4.292%, which we disregard in these exercises.) The standard repayment plan is fixed monthly payments over 10 years, and your parents can elect to defer the start of repayment until six months after your graduation.