Carly Etheridge, who recently graduated from a 4-year public university, is excited to start her new career in the fall as a high school mathematics teacher in Northern Virginia. Her salary will be $37,500. Although Carly received several scholarships and grants each semester in college, she relied on student loans to meet the cost of tuition and other educational expenses. By the time she graduated, Carly had accumulated $27,850 in student loan debt (in both Direct Sunsidized and Direct Unsubsidized Loans). As she prepares to live on her own as a first year teacher, Carly is assessing her present and future financial situations and has several questions about student loans. Help her answer the following questions.

112 What would the monthly payments be on Carly's $27,850 loan if the interest ratE loan was 4.66 percent, assuming monthly payments over a 10-year period? What would be the total amount of interest paid over the life of the loan? Now repeat this, calculating the monthly payments and the total amount of interest paid over the life of the loan, assuming that the interest rate on Carly's loans was 3.86 percent. Repeat this exercise again ssuming a 6.00 percent interest rate. 12 Use the Federal Student Aid Repayment Calculator (simply Google "Federal Student Aid Repayment Calculator" to find it) to determine the level of Carly's payments on the $27,850 loan if the interest rate is 4.66 percent and if she is single, has an adjusted gross income (AGI) of $30,000, and lives in Virginia. What are the monthly payments, or the range of pay- ments, for a standard loan repayment, a graduated loan repayment, and an income-based repayment? Click on the"+"sign next to each of them: How much total interest will Carly pay over the life of the loan under each of the three repayment plans mentioned