Marlie will be starting college next month She was approved

Last updated: 11/3/2023

Marlie will be starting college next month She was approved for a 10 year Federal Unsubsidized student loan in the amount of 18 800 at 4 29 She knows she has the option of beginning repayment of the loan in 4 5 years She also knows that during this non payment time interest will accrue at 4 29 Marlie has to decide whether she can afford to make interest only payments for the first 4 5 years or defer all payments for that period of time If she decides to make no payments during the 4 5 years the interest will be capitalized at the end of that period Suppose Marlie decides to defer the payments a What will be the new principal when she begins making loan payments