A 2012 Direct Unsubsidized Loan had an interest rate of 3.4% and tuition was about $10,000 per year (though Direct Loans on average only covered $4,000 per year). After four years of deferment, that would be 10,000(1+(0.034/12))^48= 11,454.62. Compare to Sweeney's sweet deal of only $1,000 at 34% interest: 1,000(1+(0.34/12))^48= 3,823.21. That's only a third of what you'd owe without Sweeney's sweet deal! A grumpy bystander called Oscar offers some critiques on this contract.

3. Find an authoritative source for the current federal loan rates (or if you are ineligible for such loans and are inclined to find information more applicable to your own situation, find other sources of loans and their interest rates). Make sure you can answer the next question using information from your source.

Find an authoritative source for the cost of attending UK for a year. Make sure you can put the $12,000 figure in context.