Pergunta

The standard repayment plan for federal student loans is usually set up as a 10-year term. What is the payment style for the standard repayment plan? Choose 1 answer A only pay the Interest B payments go up every two years C based on how much you earn D same amount every month
Solução

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SamanthaMestre · Tutor por 5 anos
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D
Explicação
## Step 1<br />The problem is asking about the payment style for the standard repayment plan for federal student loans. The standard repayment plan is a fixed repayment schedule where the borrower pays a fixed amount each month until the loan is paid off.<br /><br />## Step 2<br />The options provided are:<br />A. only pay the Interest<br />B. payments go up every two years<br />C. based on how much you earn<br />D. same amount every month<br /><br />## Step 3<br />Option A is incorrect because the standard repayment plan involves paying both the principal and the interest, not just the interest.<br /><br />## Step 4<br />Option B is incorrect because the standard repayment plan does not involve increasing payments every two years.<br /><br />## Step 5<br />Option C is incorrect because the standard repayment plan does not base payments on income. This is a characteristic of income-driven repayment plans.<br /><br />## Step 6<br />Option D is correct because the standard repayment plan involves paying the same amount every month until the loan is paid off.
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