If you took out $20,000 in student loans, and if you were able to pay about $125.99 a month, you could pay everything off in 20 years, as long as the loans were either direct subsidized or direct unsubsidized. In total, you would end up paying $30,237.60. The interest rate I used for this post was 4.45%, but if I had used another interest rate, the total amount of money you'd pay would either increase or decrease, depending on the rate and if it was higher or lower than the one used. It was surprising to me that it can take 20 years to pay off $20,000, even if you're paying $126 a month. I did not imagine that it would take so long and be so costly to pay off loans, even if it was only $20,000 and you paid over a hundred of that each month. This activity definitely put a lot into perspective for me.
0 Comments
Leave a Reply. |
AuthorPeri Sanderson is a Pre Calc student at MPHS Archives
November 2017
Categories |