Let's pretend College XYZ costs $70,000 to attend, but you're both fortunate, you get scholarship money, the scholarship is worth $40,000, therefore it will actually cost you $30,000 after your scholarships. Another factor, your parents have saved $15,000 to contribute to your bill. So, at this point, you owe the school $15,000 for the year. You'll need to borrow the $15,000 from a bank as a loan. I want you to answer these by using the linked calculator: 1. If you take out the loan for 10 years and the bank is charging you 4.5% interest, what would your monthly payment be? 2. If you take out the loan for 10 years, but you imagine you'll need to borrow $15,000 for all four years of college, so really $60,000 is being borrowed. If you pay that back for 10 years at 4%, what would be the monthly payment?
