6.9 Understanding Student Loans

Ishraq receives her award and tuition letter from the college she wants to attend. Her tuition, fees, books, and room and board all come to $24,845 for the year. Her non-loan awards include an instant scholarship from the school for $7,500, a scholarship she earned for enrolling in a STEM program for $3,750, and a $1,000 scholarship from her church. What is Ishraq’s college funding gap?

Efraim is a dependent undergraduate student enrolled in a biology program. He’s about to attend for the fifth year. In year 1 he took out $5,000 in federal subsidized and unsubsidized loans, in year 2 he took out $6,400 in federal subsidized and unsubsidized loans, in years 3 and 4, he took out the maximum federal subsidized and unsubsidized loans amounts. He needs federal subsidized and unsubsidi…

Olivia receives her award and tuition letter from the college she wants to attend. Her tuition, fees, books, and room and board all come to $44,845 for her second year. Her non-loan awards include an instant scholarship from the school for $13,500, a scholarship she earned for enrolling in an engineering program for $5,750, and a $2,000 scholarship from her parent’s workplace. For her first year,…

Denise takes out unsubsidized student loan, in August, in her first year of college for $2,000. She manages an interest rate of 8%. She graduates after her fifth year of college, in May. She does not pay the interest on the loan during her time in college. What is the balance of her first year loan in May of her graduation year?

Find the payment for the following student loans using the standard repayment plan:

1. Loan is $3,500, interest is 4.99%
2. Loan is for $6,200, interest is 6.75%

Erson has a balance of $8,132.55 when he starts paying off the 8.6% unsubsidized student loan he took out in his third year. How much are his payments if the term for his loan is the standard 10 years?

Ernest has four federal student loans that he wants to consolidate. He combines them into one loan. What is the maximum Ernest can reduce the interest rate by?

Brianna consolidates her student loans, some federal and some private, into a single refinanced student loan with a principal of $27,800. The interest rate that Brianna received was 8.375%. If Brianna’s new term is 15 years, how much are her payments per month?

1. The poverty guideline for a single person living in Arkansas, is $12,000. If Harriet is a single person in Arkansas with a (adjusted) gross income of $23,500, what is her discretionary income?
2. For California, the poverty guideline for a person with four people in the household is $27,750. If such a person has a (adjusted) gross income of $48,600, what is their discretionary income?

Warren qualifies for a REPAYE payment plan. His gross income is $32,700. He is single and live in Montana, so the federal poverty guideline for Warren is $12,000.

1. What is Warren’s discretionary income?
2. Under the REPAYE plan, he pays 10% of his discretionary income, but monthly. How much are Warren’s REPAYE payments?