Borrower Profile Steve is graduating in May from graduate school and has the following loans: Loan Type Loan Amount Disbursement Date Interest Rate Direct Subsidized Loan $5,964 Jan-09 6.80% Direct Unsubsidized Loan $4,068 May-09 6.80% Direct Subsidized Loan $1,278 May-09 6.80% Direct Unsubsidized Loan $4,328 Aug-09 6.80% Direct Subsidized Loan $3,601 Aug-09 6.80% Direct Unsubsidized Loan $22,985 Oct-12 6.80% Direct Unsubsidized Loan $22,627 Jul-13 5.40% Direct Unsubsidized Loan $21,556 Sep-14 6.20% Direct Unsubsidized Loan $4,159 Jun-15 6.20%

Steve earns $130,000 per year, and earns a performance bonus that is roughly 35% of his annual income. Steve is married, and has two children. Steves wife earns $80,000 per year. They file their taxes jointly, and his wife has an Unsubsidized Consolidation loan in the amount of $139,000 at a 6% interest rate. They do not make any adjustments to their gross income.

1. What is the Calder familys adjusted gross income?

2. Using the repayment estimator at StudentLoans.gov, input Steves loan, and household information and insert a screen the results generated.

3. Which of the Plans is likely the best choice for repayment? Why?