ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Brian will pay LESS in interest over the term of his loan.
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Susan will pay LESS in interest over the term of her loan.
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Brian will pay MORE in total because he has a lower credit score than Susan does.
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Susan’s loan repayment term is shorter than Brian’s loan repayment term.
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Detailed explanation-1: -Brian will pay MORE in total because he has a lower credit score than Susan does.
Detailed explanation-2: -The monthly payment on a $40, 000 student loan ranges from $424 to $3, 591, depending on the APR and how long the loan lasts. For example, if you take out a $40, 000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $424.
Detailed explanation-3: -Federally-Owned Loans Serviced by MOHELA With over 40 years in the student loan servicing industry, we have the expertise to help manage your loans – answer any account questions, help you explore your benefits and repayment options and process your payments.
Detailed explanation-4: -For example, if you had $70, 000 in federal student loans and made payments under the standard 10-year repayment plan with a 6.22% interest rate, you’d end up with a monthly payment of $785 and a total repayment cost of $94, 188. Thankfully, several strategies could help you more easily manage $70, 000 in student loans.
Detailed explanation-5: -The average federal student loan payment is $267 for bachelor’s and $196 for associate degree-completers. The average monthly repayment for master’s degree-holders is $567.