After doing research on college loans, I have chosen to use a government subsidized loan. This loan will save you the most money out of all college loans. The reason these loans are the best one to use is they do not build interest until 6 months after you graduate college. These loans are very nice but not obtainable for everyone. These loans have to be qualified for based off of income. So if you were able to qualify for $5000 a year for 4 years loan and you had a current interest rate of 3.86% and wanted to pay it of in 10 years. You would use the equation-
P(1+r)^t
Since subsided loans don't start till after college all you do is..
5000(1+.0386)^10 = $7301.19
Then multiply by 4 due to the 4 years..
7301.19*4 = $29208.76
Last divide by number of months to find payment per month..
29208.76/120
You would have to pay $243.41 a month for 10 years in order to pay off your debt.
