Not surprisingly, Tarek still has several thousand dollars in student loans outstanding. When he graduated from college, he had federal loans of $42,600, with an average APR of 5.40%. Six months after graduation, he started making payments using the standard repayment plan. How much is his monthly payment? If all his student loans were subsidized and if he wants to minimize his monthly payment to increase his financial flexibility, what repayment schedule would be best for Tarek? What will be his new maximum monthly payment if his federally calculated discretionary income is $4,260 per month?

As per Standard repayment plan Tarek's monthly payment is $______________.

The best repayment schedule for Tarek would be ___________.

Tarek's maximum monthly payment will be $____________.