Alma took out a subsidized student loan of $10,925 at a 10.8% APR. compounded monthly, to pay for her last 2 semesters of college. If she will begin paying off the loan in 15 months, how much will she owe when she begins making payments?
In a subsidized student loan, the loan does not accrue any interest while a student is in school and for the first six months after graduation. The amount of the loan she would need to pay back would be unchanged.
