Question

Marcus, a college senior, is considering repayment plans for his student loans. Compared with income based repayment plans, the standard repayment plan will generally:

Group of answer choices
A) All of these answer choices are correct.
B) Minimize the amount of interest paid.
C) Payoff the loan more quickly.
D) Have a higher monthly payment.

Answer 1

The standard repayment plan for student loans will generally have a higher monthly payment compared to income-based repayment plans, but it allows for the loan to be paid off more quickly.

Step-by-step explanation:

The standard repayment plan for student loans will generally have a higher monthly payment compared to income-based repayment plans.

With the standard repayment plan, the borrower pays a fixed amount each month for a set number of years until the loan is fully paid off. This allows for the loan to be paid off more quickly, but it also means higher monthly payments. On the other hand, income-based repayment plans adjust the monthly payment amount based on the borrower's income, which can result in lower monthly payments but a longer repayment period.

If Marcus is looking for a plan that will pay off his loan more quickly, he should choose the standard repayment plan.