A student is graduating from college in 18 months but will need a loan in the amount of $6,720 for the last three semesters. The student may receive either an unsubsidized Stafford Loan or a PLUS Loan. The terms of each loan are: Unsubsidized Stafford Loan: annual interest rate of 3.99%, compounded monthly, and a grace period of six months from time of graduation. PLUS loan: annual interest rate of 4.99%, compounded monthly, with a balance of $7,241.17 at graduation Which loan will have a higher balance and by how much at the time of repayment?
