As indicated in the "All About You" feature in this chapter, a student loan is a loan that must be repaid. Assume that when you have completed your studies you have a student loan of $25,000.
Instructions
Go to the Government of Canada's CanLearn website at www.canlearn.ca and search for the Loan Repayment Estimator.
Use the estimator and the information about it to answer the following questions.
(a) What options do you have concerning when you must start to make repayments on your loan and what options do you have regarding the length of time you can take to repay the loan?
(b) What is the monthly loan repayment for each option in part (a) using a fixed interest rate?
(c) What is the monthly loan payment for each option in part (a) using a floating interest rate?
(d) Assume that you want to pay off the loan in five years. How much would that change your payments, assuming
(1) A fixed interest rate,
(2) A floating interest rate?