11/8/2017 0 Comments LoansIf you took out $20,000 in student loans, and were able to pay $125.99 a month, you could pay your loans off in 20 years, assuming 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 if he rate 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 knew that loans took a long time to pay off, but I guess I never really knew how long. Interest rates also make a bigger difference that I had thought. I hadn't realized that they would beef the price up so much. This project definitely changed my views on loans. I will certainly be careful when taking out loans, because they can take a while to pay off.
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