Advantages and disadvantages of using repayment plan

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Sarah makes $43,000 per year, is single, and lives in Connecticut. She has $19,000 in subsidized loans and $8000 in unsubsidized loans. Which repayment plan will be the cheapest for her in total? What are some advantages and disadvantages of using this repayment plan? If Sarah wanted her total payments to be even lower, what could she do? Sarah looks at these results and realizes her monthly payment would be lower with most of the income-based repayment plans. But then, she looks at the Total Amount Paid and realizes that the loan price increases when she chooses these plans. How is this possible -- that her monthly payment is lower but her total payments are higher?

Reference no: EM132871851

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