OpenStudy (anonymous):
Alyssa may apply for an unsubsidized stafford loan with an interest rate 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? ****PLEASE HELP! show work/explain :) ****
OpenStudy (anonymous):
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. C) The plus loan is the better choice because it is $454.13 cheaper than the stafford loan. D) The stafford loan is better choice because it is $273.50 cheaper than the plus loan.
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