SARAH makes $43,000 per year, is single, and lives in Texas. She has $19,000 in subsidized loans and $8000 in unsubsidized loans.

1.Which repayment plan will be the cheapest for her overall?

2.Using that repayment plan, how much total interest will Sarah pay?

3.If Sarah wanted her total payments to be even lower, what could she do?

4.Sarah looks at the chart and realizes her monthly payment would be lower with most of the income-based repayment plans. But

then, she looks at the Total Amount Paid and realizes that the loan price increases when she chooses these plans. How is this possible

that her monthly payment is lower but her total payments are higher?

Answer rating: 100% (QA)

Sarahs Student Loan Repayment Options 1 Cheapest Repayment Plan For Sarah the cheapest plan overall ... View the full answer