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Kwon plans to attend a technical school, and his fi rst year’s tuition and fees
are an estimated $4,871. Based on his family’s income, Kwon and his family are
responsible for 40% of the tuition and fees. How much in student loans is Kwon
eligible for?
Loan Repayment
Student loan repayment varies depending on the type of loan. Some loans
must be repaid within ten years. Most loans require that repayment begin six
months after you stop attending school. Specifi c requirements vary, so make
sure you understand the terms of the loan.
In most cases, payments are expected each month. You can pay off student
loans early with no penalty, which can save on interest. To determine the amount
of interest that you will pay, use the following formulas:
total amount owed = monthly payment × number of payments
amount of interest paid = total amount owed – principal
Source: Shutterstock (Supri Suharjoto)
Th ere are several ways to fi nance college tuition,
including loans, scholarships, and grants.