Question

If you take out a $30,000 student loan at 6%: you will only need to pay back the amount you borrowed you will need to pay back only the interest on the amount you borrowed once you graduate you will have a monthly payment of about $255 each month for the next 15 years your parents are liable for your debt

Answer 1

The correct answer is:

C. Once you graduate you will have a monthly payment of about $255 each month for the next 15 years.

Having a loan amount of $30,000, an interest rate set on 6% and a loan term of 15 years, the monthly payment would be of $253.16. In 180 monthly payments, a total of $45,568.80 would be paid, including a total Interest of $15,568.80.

A student loan usually has an interest rate considerably low and a repayment schedule deferred while the student is studying.

Answer 2

I'm stuck on the same question. C seems to be only somewhat reasonable answer.