OpenStudy (anonymous):
Alyssa may apply for an unsubsidized Stafford Loan with an interest rate of 6.8%, compounded monthly and a grace period of six months from the time of graduation. Or, Alyssa may have her parents apply for a PLUS Loan with an interest rate of 7.8%, compounded monthly. She will be graduating from college in a year and a half and needs a loan in the amount of $11,895. Which loan is the better choice and why? A. The Stafford Loan is the better choice because it is $197.81 cheaper than the PLUS Loan. B.The PLUS Loan is the better choice because it is $256.32 cheaper than the Stafford Loan
OpenStudy (anonymous):
A. am assuming the repayment period is the same and interest rate is fixed. the is because you will pay more intrest in option B. $990.46 where in option A you will be paying 860.81 ,
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