Mr. Izzo's Math Classes - Mt. Sinai High School



Kaitlin will be attending Penn State University in the fall as a freshman.Tuition, Room/Board etc costs will total $47,000Kaitlin’s parents make $120,000 per year combined. They have agreed to pay $1700 per month toward school. Kaitlin will have to take loans for the rest. Kaitlin’s parents have agreed to take out a PLUS loan if Stafford Loans don’t cover everything. They will not ask Kaitlin to get a part-time job.Find the financial breakdown of Kaitlin’s college costs. Assume Kaitlin graduates in four years, and that amazingly, the price of Penn State does NOT increase during Kaitlin’s four years of college. Kaitlin also takes advantage of the increasing Stafford amounts, and borrows the max Stafford loan each year. Freshman YearSophomore YearJunior YearSenior YearParent ContributionStafford LoanPLUS LoanPrivate LoanPart Time JobTotalFind the total amount of debt that Kaitlin graduates with in both Stafford and PLUS loans.Find the Monthly payment for each loan. Assume a 10 year loan repayment and current loan rates (Stafford: 2.75% PLUS 5.3%). Staffordb) PLUSIf Kaitlin pays back both loans for 10 years (120 months), list how much she will pay for each loan in total? Kaitlin is trying to decide if she should consolidate her student loans into one large consolidation loan. Current consolidation interest ratees are 3.75%. Find the monthly payment for a 20 year consolidation loan. What is the difference in total loan repayment if Kaitlin consolidates? ................
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